**GBP/USD Signal 23/07: Choppy in Previous Session Chart**
*Original Article by Forex Live, via MENAFN*
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**Summary:**
The GBP/USD pair experienced a choppy trading session on July 22, 2024, as traders weighed mixed economic data and anticipated upcoming central bank meetings. The following analysis delves into the technical and fundamental outlook for GBP/USD, offering an in-depth guide for forex traders navigating current market conditions.
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## Market Overview
The British pound against the US dollar (GBP/USD) displayed volatile movements in the previous trading session. Investors responded to varying signals from economic data in the United Kingdom and the United States, leaving the currency pair directionless amid low conviction. As the charts reveal, price swings occurred within a somewhat restricted range, reflecting broader market uncertainty.
### Key Market Drivers
– **US Economic Data:** The US released mixed data this week, with housing numbers and consumer sentiment remaining in focus. Although some indicators pointed to resilience in the US economy, others highlighted pockets of weakness, contributing to US dollar indecision.
– **UK Fundamentals:** The British economy is grappling with subdued growth, high inflation, and mixed labor market indicators. These conflicting dynamics limit the pound’s upside unless clarity on Bank of England (BoE) policy emerges.
– **Central Bank Watch:** Both the BoE and Federal Reserve’s next policy moves remain at the center of attention. The market is keenly watching for signals regarding interest rate cuts, which have significant implications for GBP/USD’s trajectory.
– **Global Risk Appetite:** Risk sentiment also played a role, with equity markets experiencing fluctuations tied to geopolitical concerns and earnings season in full swing. As a traditionally more risk-sensitive currency, GBP is susceptible to these shifts.
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## Technical Analysis
The most recent GBP/USD session provides a snapshot of the technical landscape confronting traders. The following elements are worth close attention:
### Daily Chart Insights
– **Choppy Action:** Price action on July 22 was notably choppy, lacking follow-through in either direction. Multiple attempts to break above resistance were met with selling pressures, while dips attracted some buyers, preventing significant declines.
– **Support and Resistance Levels:**
– Immediate resistance is found near the 1.2950 area.
– Secondary resistance can be spotted at the 1.3000 psychological mark.
– On the downside, support remains near 1.2830, with further protection closer to 1.2780-1.2800.
– **Moving Averages:** The 50-day moving average is trending sideways, while the 200-day moving average sits beneath the current price, indicating longer-term bullish bias but short-term hesitancy.
– **Candlestick Analysis:** The most recent daily candle showed a long upper wick, signaling rejection at higher levels, but the lower wick also suggests dip buying.
– **Volume:** Average volume levels indicate neither bulls nor bears have full control.
### Key Technical Levels for Traders
– **Resistance Levels:**
– 1.2950: First hurdle for bulls. Breaking above could signal an attempt at the 1.3000 level.
– 1.3045: A move here may add momentum to GBP bulls.
– **Support Levels:**
– 1.2830: Initial level of defense. Breach here could attract further selling.
– 1.2780: Next significant support, likely to attract buyers if tested.
– **Pivot Area:** 1.2885-1.2900: This zone has alternated as both support and resistance, making it key for intraday direction.
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## Fundamental Analysis
### US Dollar Dynamics
– Recent US economic releases provided mixed signals, confusing the dollar’s outlook.
– The Federal Reserve has maintained a data-dependent stance, with the market split on the likelihood of interest rate cuts this year.
– Elevated US Treasury yields have underpinned the greenback, but any
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