Chart of the Day  GBPUSD

<h2><span>Chart of the Day  GBPUSD</span></h2>
<p><strong>GBPUSD Potential Reversal Zone – Probable Price Path</strong></p>
<p><span><strong>The market hopes that the European Union may reach a consensus on the 750 billion euro recovery fund,</strong> which dragged the U.S. dollar index down 0.4% to 95.9 last Friday, a 0.7% drop for the week, the biggest drop in seven weeks. However, due to the impasse during the negotiations of EU leaders, the US dollar index once rebounded 0.2% to 96.1 this morning. The yield on the 10-year U.S. Treasury bond fell nearly 2 basis points to 0.627% last week</span></p>
<p><span><strong>The number of confirmed coronaviruses worldwide exceeded 14.4 million, and the death toll exceeded 600,000.</strong> In Hong Kong, the number of newly diagnosed patients exceeded 100 in a single day, setting a single-day high; Urumqi, Xinjiang implemented closed management of the community and provided free nucleic acid testing to control the epidemic. US President Trump will meet with Senate Majority Leader McConnell and Treasury Secretary Mnuchin and others to discuss a new round of economic stimulus plans. There are reports that Trump has increased virus detection and chasing $25 billion Grants reserved</span></p>
<p><span><strong>Former Fed Chairman Bernanke and Yellen warned that the economic recovery of the United States after the epidemic may be slow and uneven,</strong> and the Fed has the opportunity to implement yield curve control. </span><span>Twenty finance ministers and central bank governors held video conferences to consider extending the debt repayment period of the poorest countries due at the end of the year. IMF urges the United States to quickly implement a new round of fiscal stimulus</span></p>
<p><span><strong>GBP:</strong> British Prime Minister Johnson asked cabinet members to return to work in the office this week and will not implement the national lockdown and prevention measures again; but chief scientific adviser Patrick Vallance said on Friday that there is no need to change the guidelines for staying home as much as possible and facing the winter epidemic Deteriorating again at any time, the nationwide epidemic prevention measures may need to be tightened</span></p>
<p><span><strong>USD: </strong>The USD should remain driven by two key factors: (1) the role of the currency as the ultimate safe haven that should continue to benefit from any return of global risk aversion on the back of  fears  of  a  Covid-19 second wave or escalating geopolitical tensions; and (2) the USD could emerge as one of the victims from the growing political uncertainty ahead of the US presidential election and lose  ground  going  into  H220 against other liquid currencies like the</span></p>
<p><img class="aligncenter size-full wp-image-47340" src="http://blog.tickmill.com/wp-content/uploads/2020/07/Screenshot-2020-07-20-11.20.56.png" alt="" width="1630" height="1194" srcset="https://blog.tickmill.com/wp-content/uploads/2020/07/Screenshot-2020-07-20-11.20.56.png 1630w, https://blog.tickmill.com/wp-content/uploads/2020/07/Screenshot-2020-07-20-11.20.56-300×220.png 300w, https://blog.tickmill.com/wp-content/uploads/2020/07/Screenshot-2020-07-20-11.20.56-1024×750.png 1024w, https://blog.tickmill.com/wp-content/uploads/2020/07/Screenshot-2020-07-20-11.20.56-768×563.png 768w, https://blog.tickmill.com/wp-content/uploads/2020/07/Screenshot-2020-07-20-11.20.56-1536×1125.png 1536w" sizes="(max-width: 1630px) 100vw, 1630px" /></p>
<p><span><strong>From a technical and trading perspective,</strong> GBPUSD is developing a potential bullish triangle continuation pattern above the pivotal 1.25 handle, bullish exposure should be rewarded on a closing breach of 1.26 initially targeting prior cycle highs above 1.28 en-route to an equality target of 1.2895. Only a closing breach of 1.25 would negate the bullish thesis suggesting a return to test 1.23 support.</span></p>
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