The British pound is trading with mixed dynamics against the US dollar during the morning session, recovering from a sharp collapse the day before, which led to an update of local lows for the instrument since February 4.
GBP/USD pound dollar forecast for today and July 22 - 23, 2021
The growing demand for safe assets is pushing investors to new sales of the British currency, which cannot find new drivers in the market. The reason for the decrease in demand for risk remains the difficult epidemiological situation in the world. The UK, which recently lifted the latest coronavirus restrictions in the country, is also facing a sharp increase in the number of new cases of infection. It cannot be said that such statistics are something surprising, since the authorities initially predicted an increase in the incidence, but the question is whether the British health service has enough resources and whether a new wave will lead to a sharp increase in hospitalizations and mortality.
Interesting macroeconomic statistics from the UK will appear only on Friday. Investors are waiting for the release of June data on the dynamics of retail sales, as well as the level of business activity from Markit for July.
Support and resistance levels
The Bollinger bands on the daily chart show a steady decline within the forex forecast. The price range is expanding, but at the moment it does not have time for a surge of "bearish" sentiment. The MACD indicator is declining, maintaining a strong sell signal (the histogram is located below the signal line). Stochastic, approaching its minimum levels, turns into a horizontal plane, signaling a strong oversold pound in the ultra-short term.
Resistance levels: 1.3650, 1.3700, 1.3750, 1.3800.
Support levels: 1.3600, 1.3552, 1.3500, 1.3540
Trading Scenarios
Thus, the GBP/USD forecast of the pound dollar for July 22-23, 2021, you can rely on a confident breakdown of the 1.3600 level down to open new sales. Take profit - 1.3500. The stop loss is 1.3650. Implementation period: 1-2 days.
A rebound from the 1.3600 level as a support, followed by a breakdown of the 1.3650 mark up, can be a signal for new purchases with a target of 1.3750. The stop loss is 1.3600.