It's coming down but there is hope yet
Fiona Cincotta July 12, 2021 3:19 AM
GBP/USD trades lower but bulls remain hopeful, all eyes to PM Boris Johnson for Freedom Day plans. FTSE trades lower, lagging its peers but key supports hold.
FTSE its coming down but key supports hold
European bourses are set to kick the week off in a mixed fashion, the Italian FTSE Mib is managing to push into positive territory but the FTSE lags.
Prime Minister Boris Johnson is due to urge caution as he sets out the plan to ease covid restrictions further, later today.
Despite record highs on Wall Street on Friday, the broad mood in the market is downbeat amid growing concerns over slowing global growth.
Where next for FTSE?
The FTSE continues to trade above its ascending trendline dating back to early October. It also trades above its 50 & 100 sma on the daily chart, keeping the bulls optimistic.
The RSI is neutral, and the index has been in consolidation over the past month and could continue that way for now.
Bulls will be looking for a move over 7170 for the index to push towards 7220 the post pandemic high.
Any move below the 50 sma at 7070 and the ascending trendline at 7050 could negate the near term uptrend. A move below 6950 could see more sellers jump in.
GBP/USD – It’s coming down, but there is hope yet!
Despite a valiant effort across the Euros2020 tournament, it’s not coming home quiet yet (but things are looking good for next year’s world cup!)
With no Euros2020 bounce the GBP/USD is kicking the week off on a subdued note, remaining below 1.39.
Rising covid cases in both the US & the UK could boost safe haven flows into the US Dollar whilst simultaneously dragging on the Pound.
Prime Minister Boris Johnson could water down Freedom Day with plans set to be laid out this afternoon.
The US Dollar is being lifted by rising treasury yields – which fell to 4 month lows last week.
There is little in the way of data today, Boris Johnson and Fed Williams are due to speak.
Where next for GBP/USD ?
The GBP/USD trades above its 50 & 100 and its descending trendline, furthermore the MACD is keeping buyers hopeful.
Buyers will be looking for a move above 1.39 in order to head towards 1.3940 June 28 high and 1.40 round number.
Support can be seen at 1.3850 the 100 sma and 1.3825 the ascending trendline. A break below the 50 sma at 1.38 could negate the near term up trend.
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