GBPUSD Slides Below Dec 2018 low, Next Support at 1.2360

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Written By: Alejandro Zambrano

Jul 09, 2019, 09:33 BST 09:33

Summary:

GBPUSD just slid below the Dec 2019 low of 1.2479, and the June 2019 low of 1.2510. Read our outlook to find out what may happen next.

GBPUSD just slid to a new monthly low, and also traded below the December 2019 low of 1.2479, and the June 2019 low of 1.2510. At the time of writing the price was at 1.2466.

The break to the December and June low is important as they were the last two major levels that keep the price supported. The next major level and potential support level is the April 2017 low of 1.2361. The slide follows the idea that the UK is heading for a hard Brexit.

Pattern wise, GBPUSD is breaking a double bottom, alternately, and my preferred interpretation is that we are seeing a continuation of a failed head and shoulders pattern that triggered already in May 17 with a target of 1.1947. As for today’s slide, the bulls will be under pressure as long as the prices trades below yesterday’s high of 1.2540.Don’t miss a beat! Follow us on Twitter.

GBPUSD Daily Chart

Written By: Alejandro Zambrano

Alejandro Zambrano combines extensive professional experience and a pragmatic attitude to trading, building clients’ understanding of the markets and the rationale behind investing. Zambrano was the Chief Market Strategist of the FCA regulated broker, Amana Capital. Prior to that, he was also the Head Analyst at FXCM’s London research desk. Interact with Alex via Twitter at @AlexFX00.