Technical analysis of GBP/USD for July 31, 2015

IMPACT
ON USD:

The GDP
value in the United States, adjusted for price changes increased at an annual
rate of 2.3 % in the second quarter of
2015, according to the “advance” estimate released by the Bureau of
Economic Analysis. In the first quarter,
real GDP increased 0.6 percent (revised).

In the week
ending July 25, seasonally adjusted initial claims advanced to 267,000, posting an increase of 12,000 compared to the previous week.

Technical overview:

The cable
managed to hold the ascending trendline in the H1 chart. It fell below
the bearish head & shoulder pattern.

On a daily
closing basis, the cable made double top at 1.5615 and hourly basis 1.5675 and
1.5700 are the supply zone.

Earlier, the
cable made a strong ceiling at 1.5700. The
cable broke the 3-month ascending trendline. It is still trading below this line. In the four-hour chart, the cable fell below the bearish h&s pattern.

The 20&
50Dsma is found at 1.5550, 100Dema is found at 1.5460, 200Dsma is found at 1.5410, 20Wsma is seen at 1.5340, and 100Dsma is found at 1.5320. The weekly trading pattern is framed
between 1.5440 and 1.5700.

Intraday
resistance is seen at 1.5610, 1.5630, and 1.5650. Support is found at 1.5550 and
1.5530. Fresh selling is available below 1.5550 with an initial target at 1.5530 and at 1.5490 and
1.5470 later. The selling accelerates only below 1.5530 and the trend is likely to change below
1.5440.

Intraday risky buying is available above 1.5600 with targets at 1.5620 and 1.5640. Safe buying is available only above 1.5650.

Whenever the
cable touches the 1.5675 and 1.5700 zone, it hit lower low. Initial low was reached at 1.5530 and at 1.5467 later. This time, we can expect 1.5450 or 1.5410.

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The material has been provided by InstaForex Company – www.instaforex.com

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