What to await from GBPUSD in short term trading

21 Jul 2021

Pound did drop below 1.36 but couldn't sustain the drop and climbed back to 1.3642 and is around 1.3625 as of now. There is a small channel forming that basically awaits a push in either direction. At this point (and in summer liquidity is as usual lower and major moves happen less often) market is careful, sentiment is changing by hours. Market may get into little risk on mode if USA Infrastructure deal is approved or there are strong indications that it's really coming. For some time it might give a boost to GBP but I'm sure quickly it will change into dollar strength. I will be looking at resistance near 1.364-1.365 to open a short position or at somewhat lower price if stochastics in 5 and 15min charts will align.