FX.co ★ Forecast for GBP/USD on July 11, 2024

GBP/USD

Yesterday, the British pound advanced and reached the target level of 1.2847. In order to rise further, to reach 1.2975, the price must consolidate above the aforementioned mark, which is only possible under favorable circumstances, as today, the UK will publish reports on GDP and industrial production, while the US will release crucial inflation data.

We are inclined to believe that the overall outcome of the expected news will be in favor of the dollar, so we expect the pound to decline to the support level of 1.2755 and further down to the target level of 1.2633. On the 4-hour chart, the price, along with the Marlin oscillator, has formed a divergence.

Before the imminent release of important economic data, technical signals may produce a false signal, but nonetheless, the pound is showing accumulated fatigue. The support level of 1.2755 is strengthened by the MACD line, indicating a struggle here. However, the very fact that the price will drop by a figure will already indicate the outcome of this struggle.