July 5 2021
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Is the weakness over for the GBPUSD? To me, it looks like it. But I am a GBP bull, so my view is biased probably.
The recovery from 1.3740 was certainly impressive reaching 1.3840, just shy of resistance at 1.3860/70. However, such is my conviction that cable is going north. I think it won’t be very long before the resistance is broken and we test 1.3900/20.
For today I think you will find support at 1.3800/1.3790 and then at 1.3760. Which would be an ideal entry point for a long position, in my view. The risk to the down should be limited to last weeks lows at 1.3740.
Data for the GBP this week is limited to June Services and Composite PMI’s today expected to be 61.7. Then you have to wait until Friday for Monthly UK GDP.
UK Prime Minister Boris Johnson has declared his desire to fully reopen the country on the 19th of July this will be welcomed by UK businesses. The Northern Ireland sausage wars dispute with the EU is also less stressful as a truce has been called between the protagonists. So even the news seems to be GBP supportive.