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      A Top Structure Is Observed, with the Focus Shifting Towards a Rebound Opportunity at 1.3250

      Eva Chen

      Forex

      Summary:

      Following a breakdown of the neckline at 1.3369 on July 16, the GBPUSD has validated a head and shoulders top pattern. Subsequent rallies failed to surpass the 1.3632 level, suggesting a short-term top has been established. The pair is currently navigating a retracement channel, as indicated by the pattern.

      Buy

      GBPUSD

      EXP
      Trading

      1.33443

      Entry Price

      1.36370

      TP

      1.31280

      SL

      1.32060 -0.00274 -0.21%

      0

      Point

      Flat

      1.31280

      SL

      CLOSING

      1.33443

      Entry Price

      1.36370

      TP

      Fundamentals

      The GBPUSD struggled to gain upward momentum, hovering below 1.3360 on Tuesday. The U.S. dollar outperformed other currencies as concerns about economic slowdown following the trade agreement with the EU subsided.
      The recent significant pullback in the GBPUSD stemmed from a break below the critical neckline at 1.3369 on July 16. Subsequent rallies failed to surpass the 1.3632 level, forming a head and shoulders top pattern, which foreshadowed the recent decline.
      Given this technical setup, the formation of the head and shoulders top pattern suggests a continuation of the downtrend, with a target below the 1.3250 level. A rebound is anticipated below this level.
      A Top Structure Is Observed, with the Focus Shifting Towards a Rebound Opportunity at 1.3250_1

      Technical Analysis

      The GBPUSD declined below 1.3363 on Tuesday, extending the bearish trend from 1.3787. The current price action suggests a retracement of the entire rally from 1.2099. The intraday bias remains bearish, with the 100% Fibonacci retracement level at 1.3163, below 1.3587. The downside risk will persist as long as the 1.3587 resistance level holds.
      In terms of trading strategy, an approach with the least risk is recommended. You can consider buying on dips below the 1.3250 level.

      Trading Recommendations

      Trading Direction: Buy
      Entry Price: 1.3250
      Target Price: 1.3637
      Stop Loss: 1.3128
      Valid Until: August 13, 2025 23:55:00
      Support: 1.3314, 1.3248, 1.3184
      Resistance: 1.3361, 1.3443, 1.3468
      Risk Warnings and Investment Disclaimers
      You understand and acknowledge that there is a high degree of risk involved in trading with strategies. Following any strategies or investment methodologies is the potential for loss. The content on the site is being provided by our contributors and analysts for information purposes only. You alone are solely responsible for determining whether any trading assets, or securities, or strategy, or any other product is suitable for you based on your investment objectives and financial situation.

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