GBP/USD under pressure after pattern breakout
Gary Christie July 13, 2020 11:17 PM
The GBP/USD broke its short term uptrend in Monday's trading.
The US Dollar was bullish against most of its major pairs on Monday with the exception of the EUR.
On the economic data front, the Monthly Federal Budget Deficit increased to 864.1 billion dollars on month in June (863.0 billion dollars expected), from 8.5 billion dollars in May, marking a record.
On Tuesday, the National Federation of Independent Business' Small Business Optimism Index for June is anticipated to increase to 97.8 on month, from 94.4 in May. Finally, the Consumer Price Index for June is expected to rise 0.5% on month, from -0.1% in May.
The Euro was bullish against all of its major pairs. In Europe, no major economic data was released.
The Australian dollar was mixed against all of its major pairs.
Looking at the biggest loser in Monday's trading, the GBP/USD dropped 70 pips to 1.2552. The currency pair broke below a triangle top pattern formation. As long as the pair can remain below 1.262 resistance, look for a continuation lower towards 1.2165 support.
Source: GAIN Capital, TradingView
StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.