GBPUSD Intra-Day Analysis 9th July

- Technical Update 9th July AM.

• An attempt to sustain a break above 1.5500 by GBPUSD bulls has seen an initial failure during the London session this morning.
• A bearish engulfing candle (see chart below) has formed on the 1 hour timeframe.  This is close to previous higher timeframe support but in-line with the current bearish downside trend.
• A deeper pullback would have been preffered but price action around key psychological levels like this has our attention.
• Price is once again trading under the 21 period SMA on the 1 & 4 hour timeframes. Cable is still trading close to previous 28/6/2012 1.5484 support but looking fragile during initial trading.
• The US dollar index is close to key resistance and a break above 83.54 would encourage USD bulls and potentially see volatility and further cable downside price action.
• The UK FTSE 100 is down  0.43% and the market looks to be trading on the negative sentiment seen on Friday, following under par employment data from the US.  Spanish 10 year bond yields are trading at 7.04% and the EUR is trading close to multi-year lows.

GBPUSD 1 Hour Chart