The British pound is trading with an upward trend against the US dollar during the morning session, developing a "bullish" signal formed the day before, as well as updating local highs since July 16.
GBP/USD pound dollar forecast for today and July 28 - 29, 2021
There were few fundamental reasons for the growth of the British currency, since there were practically no interesting macroeconomic statistics, and investors are still waiting for the publication of the final minutes of the US Federal Reserve meeting on Wednesday. The market expects to hear at least some hints of a more rapid curtailment of the quantitative easing program against the background of the continuing growth of inflation in the country.
Meanwhile, bidders are concerned about the surge in the incidence of coronavirus in certain US states, where the percentage of the vaccinated population is the lowest (in the south and east of the country). It is quite possible that a number of quarantine restrictions may be returned in these regions. In turn, the United Kingdom is once again showing optimistic dynamics in terms of morbidity after a noticeable jump against the background of the European Football Championship.
Support and resistance levels
The Bollinger bands on the daily chart show a reversal in the horizontal plane within the forex forecast. The price range expands slightly from above, freeing the way for the "bulls" to new local highs. The MACD indicator is growing, maintaining a strong buy signal (the histogram is located above the signal line). Stochastic shows similar dynamics, but it is located near its maximum values, which signals a strong overbought of the pound in the ultra-short term.
It is necessary to hold the existing long positions in the nearest time intervals until the signals from technical indicators are clarified.
Resistance levels: 1.3857, 1.3900, 1.3960, 1.4000.
Support levels: 1.3800, 1.3750, 1.3700, 1.3650.
Trading Scenarios
Thus, GBP/USD forecast pound dollar for July 28-29, 2021 to open long positions, you can rely on the breakdown of the 1.3857 mark up. Take profit - 1.3960. The stop loss is 1.3800. Implementation period: 2-3 days.
A rebound from the level of 1.3857 as a resistance, followed by a breakdown of the 1.3800 mark down, can be a signal for new sales with a target of 1.3700. The stop loss is 1.3857.