The GBP/USD pair is trading in a local uptrend against the background of disappointing data on the US labor market, trading at 1.3756
GBP/USD Pound Dollar forecast and signals for today and July 26 - 27, 2021
The British currency is trading with a slight decrease after the publication of statistics on retail sales in the UK for June. Thus, the basic retail sales index increased by 0.3% on a monthly basis, and by 7.4% on an annual basis, which is significantly lower than the previous 21.7%. In turn, the volume of retail sales at the same time increased by 0.5% on a monthly basis and by 9.7% on an annual basis, which turned out to be slightly better than forecasts, but significantly inferior to the May figures.
The decline in the GBP/USD pair would have been more noticeable if the US dollar had not lost 300 points in the index yesterday, reacting to the publication of data on the US labor market. Thus, the number of initial applications for unemployment benefits increased to 419 thousand, with a forecast of a decrease to 350 thousand. The total number of people receiving benefits was 3,236 million, which is higher than the 3,100 million predicted by analysts.
Support and resistance levels
The instrument is traded within the framework of a local downtrend. Technical indicators hold the sell signal: the fast EMA on the Alligator indicator are below the signal line, and the histogram of the AO oscillator is held in the sales zone, forming ascending bars.
Resistance levels: 1.3900, 1.4217.
Support levels: 1.3620, 1.3343.
Trading Scenarios
Thus, the GBP/USD forecast of the pound dollar for July 26-27, 2021 in the event of a continued decline in the asset, as well as the price fixing below the local support level at 1.3620, it is important to open sell positions with a target of 1.3343. The stop loss is 1.3750. Implementation period: 7 days or more.
In the event of a reversal and the beginning of growth of the asset, as well as the price fixing above the local resistance level at 1.3900, buy positions with a target of 1.4217 will be relevant. The stop loss is 1.3800.