Skip to content

CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

GBP/USD recovery hopes appear dim after breaking June low

The British pound attempts recovery after breaking June low; oil prices see no relief as global recession fears solidify and GBP/USD bulls need to recapture June low for reversal hopes.

Source: Bloomberg

Thursday’s Asia-Pacific outlook

Asia Pacific markets face a mixed open after stocks on Wall Street closed mostly higher, and the US dollar rose. The Federal Reserve's latest meeting minutes crossed the wires, showing that the FOMC remains committed to tackling inflation. The latest US economic data showed signs that inflation might indeed be easing, with the ISM’s PMI data for June showing that prices paid by firms have decreased, albeit only slightly.

Across the pond, in the United Kingdom, Prime Minister Boris Johnson’s position in Her Majesty’s Government weakened further after another round of resignations, this time among more junior cabinet members. The British pound traded at its lowest level since March 2020 against the US dollar. For now, Mr. Johnson’s fate is uncertain as rules would have to be changed to call another no-confidence vote, and there has been no indication so far that resignation is forthcoming.

The Australian dollar and New Zealand dollar also fell victim to the stronger dollar, with NZD/USD and AUD/USD trimming nearly 0.5% overnight. A staggering fall in commodity prices has pained the two currencies in recent weeks. This morning, Australia’s Ai Group Services Index for June fell to 48.8 from 49.2 in the prior month. Iron ore prices fell around 1% during US trading hours.

Oil prices fell again across the WTI and Brent benchmarks, with prices now below $100 per barrel as recession fears drag on demand expectations. Banks and analysts are starting to drop their year-end targets for the commodity after this week’s big drop, reversing lofty expectations for higher prices just a few weeks ago. Meanwhile, in Beijing, China, authorities are restricting access to many public venues to only those who are vaccinated.

Notable Events for July 7:

  • Japan – Foreign Bond Investment (02/JUL)
  • Philippines – Unemployment Rate (MAY)
  • Australia – Balance of Trade (MAY)

GBP/USD technical forecast

GBP/USD remains below its June swing low, but prices appear to be attempting to rebound, although modestly. The recent weakness following a break below Pennant support may continue if bulls can’t recapture that level. The RSI and MACD oscillators are negative, and technically, the cross looks primed for more weakness ahead.

GBP/USD 8-hour chart

Source: TradingView

This information has been prepared by DailyFX, the partner site of IG offering leading forex news and analysis. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.


This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

Start trading forex today

Find opportunity on the world’s most-traded – and most-volatile – financial market

  • Trade spreads from just 0.6 points on EUR/USD
  • Analyse with clear, fast charts
  • Speculate wherever you are with our intuitive mobile apps
Find out more

See an FX opportunity?

Try a risk-free trade in your demo account, and see whether you’re onto something.

  • Log in to your demo
  • Try a risk-free trade
  • See whether your hunch pays off
Log in now

See an FX opportunity?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Get spreads from just 0.6 points on popular pairs
  • Analyse and deal seamlessly on fast, intuitive charts
  • See and react to breaking news in-platform
Log in now

See an FX opportunity?

Don’t miss your chance. Log in to take your position.

Take advantage

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Friday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

<h3>How much does trading cost?</h3>
<h3>Find out about IG</h3>
<h3>Plan your trading</h3>

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.