The last session of July brought a fairly significant strengthening of the dollar against the other major world currencies. After a strong upward Thursday, the GBPUSD ended Friday’s trading below the opening drawing on the daily chart (below) a bearish pinbar.
The pinbar appeared at a similar level to that of 9 March. Then there were sudden declines… will history repeat itself?
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On the H4 chart (above), there is a bearish engulfing pattern . The last four-hour drop in July indicates the coming declines.
On the MACD there was another lower bar (red), which also indicates bearish mood on the cable.
The media reports quite worrying news from the UK about the second wave of the COVID-19 pandemic. The constant increase in the number of COVID-19 cases in Manchester led to further restrictions already imposed on Thursday last week.
Today Boris Johnson ordered new recommendations to prevent another national lockdown. The plan is to order people over 50 years old to stay at home if the Manchester restrictions fail.
Combining the technical picture of the GBPUSD charts and the above quoted worrying UK information, a downward correction can be expected in the coming days.
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