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Daily Market Analysis 16/07/2021: GBPUSD

Instrument: GBPUSD

Technical Analysis

Bullish Preference: 
Buy position is envisaged if price trades above 1.38208 with take profit at 1.38366.
Bearish Preference: 
Sell position is envisaged if price trades below 1.37850 with take profit at 1.37728.
Fundamentals:
1:30 PM  USD Core retail Sales 
               USD Retail Sales
3:00PM  USD Prelim UoM                         Consumer Sentiment

Comment: The dollar was largely flat in Europe early Friday, maintaining the week’s gains on a safe-haven bid amid rising Covid-19 cases worldwide. High U.S. inflation is also lifting expectations of an early reduction in the Federal Reserve’s $120 billion in monthly bond purchases. There is room for the cable to climb back down “The Delta variant’s spread has resulted in over 48,000 confirmed cases in the UK on Thursday, days before the grand “Freedom Day” reopening on July 19. Hospitalizations and deaths are also on the rise, adding to concerns of an economic slowdown resulting from quarantines.

Analysis: Scrum Team

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