British Pound Latest – GBP/USD Bludgeoned by a Rampant US Dollar

[MongiIG]

Jul 12, 2022 | DailyFX
Nick Cawley, Strategist

GBP/USD - PRICES, CHARTS, AND ANALYSIS

• US dollar prints another 20-year high.
• US Treasury 2-yr/10-yr curve inverts further.
• Retail traders remain heavily net-long.

Cable is trading at a news two-year+ low against the greenback with the pair finding little to no support on the move lower. GBP/USD is suffering from GBP weakness along with US dollar strength, with the British Pound under pressure from ongoing economic and political woes. The UK economy remains weak and may be looking at an official recession in the coming months, while over at Westminster, a raft of candidates are putting themselves forward for the vacant role of Prime Minister after Boris Johnson resigned last week. Political battles can turn nasty, quickly and this will weigh on Sterling in the coming days.

The weekly GBP/USD chart shows the lack of near-term support before the March 2020, double low around 1.1420 comes into play. Cable has lost nearly 25 big figures since May 2021 and while this may offer a good level to start phasing into a long-term position, in the short-term Sterling still looks vulnerable.

GBP/USD WEEKLY PRICE CHART – JULY 12, 2022

 

What is your view on the British Pound – bullish or bearish?

[RCtrader]

I believe the pound has to rebound somewhere between 100 and 200 pips. There are harmonic patterns all over the place, on pairs like eurusd, audusd and usdcad.

gbpusd bullish butterfly on H1

[MongiIG]

1 hour ago, RCtrader said:

I believe the pound has to rebound somewhere between 100 and 200 pips. There are harmonic patterns all over the place, on pairs like eurusd, audusd and usdcad.

gbpusd bullish butterfly on H1

Thanks for sharing @RCtrader

All the best - MongiIG