The GBP/USD has been able to turn in a slight move higher the past day, but the Forex pair remains within the lower depths of its mid-term range as it is tested by bearish sentiment. However, the ability of the GBP/USD to remain above the 1.38000 juncture yesterday may be looked at as a bright spot by speculative bulls, who may be tempted by the rather strong selling the Forex pair has endured in June.
As July starts, this doesn’t mean a guaranteed change in sentiment is about to occur, but the GBP/USD is trading above lows seen on the 21st of June. Yes, after hitting a high of nearly 1.40000 on the 23rd of June, bearish sentiment has certainly created a rather strong incremental decrease in resistance levels and support has been brushed aside easily. However, as the U.S jobs data gets ready to be released tomorrow, technical traders should contemplate yesterday’s low of 1.38020 and consider the idea that the lower support ratios could prove durable. Trading in the GBP/USD will be volatile over the next twenty-four hours.
Support junctures of 1.38200 and 1.38100 should be watched carefully in the short term; if they continue to spark tests, the GBP/USD may see an additional leg down as a nervous reaction. However, speculative bulls may see these values as a place to start considering buying opportunities within the GBP/USD. Volatility is certain to be seen, so aggressive traders need to use all of their skills as they pursue their wagers. The notion that the GBP/USD may be oversold could prove to be tempting for traders within its current depths. And if the Forex pair does hit the 1.38200 to 1.38150 levels, it could be an interesting place to initiate a buying position with the belief that a reversal will be demonstrated.
Traders should be careful regarding the amount of leverage they use because the GBP/USD is likely to see its short-term price range broaden due to the data release which will happen from the U.S late tomorrow. Speculators who want to be buyers may perceive that there is a better risk/reward ratio via technical charts on the buying side compared to being a seller. If a trader wants to sell the GBP/USD they should look for quick-hitting trades with take-profits working near existing support levels so they can cash out of trades before reversals higher occur. The GBP/USD will deliver fast results today and tomorrow, particularly because its mid-term range is being tested near lows.
GBP/USD Short-Term Outlook:
Current Resistance: 1.38400
Current Support: 1.38150
High Target: 1.38900
Low Target: 1.37800
