Technical correction | 05 August 2019

05 August 2019, GBP/USD

Technical correction

GBPUSD trading plan:

We are expecting a technical correction in the British currency. The decline in the yield of US government bonds will have a negative impact on the value of the dollar. The yield of 2-Year US government bonds fell below 1.72%. Bond yields are 0.405% lower than the Federal Reserve interest rate. Fed funds futures implied traders saw a roughly 99% chance of the Fed cutting rates again next month, according to CME Group's Fed Watch tool. This factor will force traders to sell U.S. currency. We're expecting to test the psychological level of 1.2200.

Trading recommendation: Buy 1.2140 and take profit 1.2200.

David Johnson
Analyst of «FreshForex» company
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