Community Forecasts for July 6-10 July: GBP/USD 1W Chart

Source: Dukascopy Bank SA
© Dukascopy Bank SA
Our respondents are most successful in predicting the Cable's performance, as 62% of votes over the last week were correct. It seems that the pair is finally entering a bearish correction after a solid rally.  The Pound slipped lower against the Dollar on Wednesday, after data showed that UK manufacturing activity expanded at the slowest rate in 26 months in June and fell to 51.4 last month from 51.9 in May, whose figure was revised from a previously estimated reading of 52.0. Meanwhile, Greek debt concerns continued to support demand for the safe-haven Greenback. The next day, the Sterling was almost unchanged, trading at two-and-a-half week lows despite better than expected UK construction data.
Keeping in mind  a lack of reports from Britain during this five trading days and potentially, a stronger Dollar, the depreciation can continue. Nevertheless, traders could pay additional attention to the data on the UK trade balance as well as BoE interest rate decision on Friday. 
Additionally, almost 64% of votes were bearish, "GBP/USD seems bearish on the daily chart. Greece has voted No in the referendum on Sunday. This means that now Greece might exit the Euro Zone altogether. This uncertainty causes strong risk aversion in markets, as investors could prefer USD over GBP, as a "safe haven". Support lies around 1.5440, which was daily spike high at June 4. Resistance lies around 1.5640, which is recent daily high at July 3rd." said geula4x. Another bullish trader, iiivb pointed out that "Greece exit again starts to be factored into fractal price action weakening the ballast of the Greek economy on the whole Euro currency quote."

© Dukascopy Bank SA

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