Upside hopes for the GBP?
The British monthly GDP is announced on Friday at 09:00 MT time.
How to trade on August 4?
Fundamentals
- The current slowdown in new virus cases in the USA improved the market sentiment. Nasdaq surged to fresh highs.
- Disputes between Republicans and Democrats over the US fiscal stimulus weighed on the greenback. In fact, unemployment benefits expired last week. Also, Sino-American tensions are escalating. The US offered China two choices. China may sell TikTok’s operations to Microsoft or any other American company. Otherwise, the USA will close TikTok’s US business by September 15.
- The Reserve Bank of Australia left cash rate unchanged at the record low of 0.25%. Officials mentioned that the recovery will be uneven and bumpy with the coronavirus outbreak in Victoria. Also, the central bank will resume its bond buying further.
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Technical tips
AUD/USD
Let’s look at the AUD/USD chart. It has bounced from the support line at 0.7080. Now it’s approaching the resistance at 0.7145. If it crosses it, it may surge to the high of July 29 at 0.7185. On the flip side, if it falls below the support at 0.7080, it will open doors towards the next support at 0.7020.
S&P 500
The S&P 500 has just crossed the resistance at 3 270. Now it’s getting closer to the high of January 23 at 3 325. If it breaks through this level, it may climb up to the all-time high at 3 390. However, the move below the support at 3 270 will drive the price to the low of July 28 at 3 210.
Gold
Gold is stuck in a range between $1 965 and $1 980. If it escapes above this range, it may jump to the widely expected level at $2 000. Otherwise, the move below will push gold to the low of July 30 at $1 950.
GBP/USD
Finally, let’s get a closer look at GBP/USD. The pair reversed after falling down for two days straight. It had a pullback from the key psychological mark at 1.3000. If it breaks through the resistance at 1.3100, it may surge to the high of July 31 at 1.3155. Support levels are at 1.3000 and 1.2900.
Follow further news:
- The Canadian manufacturing PMI will be released at 16:30 MT time! Stay tuned!
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