GBP/USD Forex Signal: Bullish Trend to 1.400 to Remain – DailyForex.com
The pair will likely keep rising as bulls target the resistance at 1.400 which is almost 1% above the current level.
- Buy the GBP/USD pair and set a take-profit at 1.4000.
- Add a stop-loss at 1.3785.
- Timeline: 1-2 days.
- Set a sell-stop at 1.3820 and a take-profit at 1.3750.
- Add a stop-loss at 1.3900.
The GBP/USD rose against the US dollar as investors reacted to potential UK full reopening news and the relatively strong Services and Composite PMI data. The pair rose to a high of 1.3876, which is 1% above the lowest level last week.
UK Full Reopening
The GBP/USD is rising after the Boris Johnson administration announced that it will remove all of the remaining restrictions in England on July 19th. This means that the government will end all its restrictions on gathering and mask mandates. The government will also scrap the “work from home” guidance.
The opposition Labour party and some medical professionals warned that the new policy will likely push the number of daily cases to more than 50,000.
The decision comes at a time when the Delta variant of the virus is causing havoc around the world. In fact, the number of daily infections in the country is also rising. At the same time, the government is ramping up its vaccination drive. It has already vaccinated most of the country’s total population.
The GBP/USD is also rising after the relatively strong UK Services and Composite PMI data. The numbers showed that the country’s Services PMI rose to 62.4 in June as more service providers reopened. This increase was better than the median estimate of 61.7. The Composite PMI rose to 62.2 in June. As such, this business activity will continue as the country moves towards a full reopening. Markit will release the latest UK Construction PMI data later today.
The GBP/USD will also react to the latest Services and Non-Manufacturing PMI data from the United States. Economists expect the Markit Services PMI will come in at 63.9 while the ISM Non-Manufacturing PMI rose to 63.5.
GBP/USD Technical Analysis
The GBP/USD pair has been in a strong upward momentum in the past few days. The pair rose to a high of 1.3876, which is slightly above the 25-day and 50-day moving average (MA) on the four-hour chart. The pair’s MACD has also moved above the neutral line while the Relative Strength Index (RSI) has been in an upward trend. Additionally, it has formed what looks like a double-bottom pattern whose neckline is at the 1.4000 level. Therefore, the pair will likely keep rising as bulls target the resistance at 1.400 which is almost 1% above the current level.
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