Focus on GBPUSD today – 4th July 2024 

In this comprehensive analysis, Ultima Markets brings you an insightful breakdown of the GBPUSD for July 4 2024. 

Key Takeaways 

• UK election: The UK will hold their general election later today. Traders will pay attention to opinion polls for the time being which may induce volatility on the pound sterling. Recently, support rate for Labour Party soared, prompting Conservative Party to invite former Prime Minister Boris Johnson to late-night campaign rally to retain more seats.  

• Labour Party may win: It has been 14 years since Labour Party was elected to govern the country. In the past, the party vowed to get rid of the image of heavy taxation and increased spending. However, due to British government’s fiscal condition, the Labour has limited room to overspend, which may provide some support for pound sterling to appreciate in the short-term.  

Technical Analysis 

Daily Chart Insights 

• Stochastic Oscillator: The indicator formed bullish signal in the oversold region while crossing the 50 median line on yesterday, suggesting strong bullish bias for near-term.  

• Support and resistance: The pair fell below alternate trendline following divergence pattern formation in late June, which also acts as a neckline. Yesterday’s rise above the neckline reduces the possibility for a bearish bias at the moment.  

1-Hour Chart Insights 

• Stochastic Oscillator: The indicator formed bearish signal at the overbought region, coupled with the emergence of divergence signal, suggesting possibility for a short-term bearish bias.  

• Fair value gap (FVG): Following the recent rise, fair value gap emerges at the lower level. If correction were to occur, the pair is expected to head towards the 38.2% of Fibonacci retracement level, which coincides with 33-MA line (red).  

Pivot Indicator 

• According to the trading central in Ultima Markets APP, the central price of the day is established at 1.2705, 

• Bullish Scenario: Bullish sentiment prevails above 1.2705, first target 1.2775, second target 1.2800; 

• Bearish Outlook: In a bearish scenario below 1.2705, first target 1.2675, second target 1.2650. 

Conclusion 

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Disclaimer   

Comments, news, research, analysis, price, and all information contained in the article only serve as general information for readers and do not suggest any advice. Ultima Markets has taken reasonable measures to provide up-to-date information, but cannot guarantee accuracy, and may modify without notice. Ultima Markets will not be responsible for any loss incurred due to the application of the information provided.