Key Highlights
- GBP/USD remained stable and it traded to a new multi-month high at 1.4250.
- A crucial bullish trend line is forming with support near 1.4150 on the 4-hours chart.
- EUR/USD could extend its upward move above the 1.2260 resistance.
- The UK Manufacturing PMI is likely to remain strong at 66.1 in May 2021.
GBP/USD Technical Analysis
The British Pound remained well supported above the 1.4100 zone against the US Dollar. The GBP/USD pair started a fresh increase and it remained strong above 1.4150.
Looking at the 4-hours chart, the pair traded as low as 1.4091 before it started a fresh increase. There was a break above the 1.4150 and 1.4160 resistance levels. The pair settled nicely above the 1.4150 level, the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours).
There is also a crucial bullish trend line forming with support near 1.4150 on the same chart. On the upside, the pair is facing resistance near the 1.4250 level.
A successful break above the 1.4220 level could open the doors for a strong increase. The next major resistance is near the 1.4300 level.
On the downside, the trend line support holds the key. A clear break below the trend line and 1.4150 could start a major downside correction. The next major support is near the 1.4120 level, below which the pair might retest the 1.4020 support zone.
Besides, EUR/USD remained stable above 1.2140 and it is likely to push above the 1.2260 resistance zone in the near term.
Economic Releases
- Euro Zone CPI for May 2021 (YoY) (Prelim) – Forecast +1.9%, versus +1.6% previous.
- Euro Zone Core CPI for May 2021 (YoY) (Prelim) – Forecast +0.9%, versus +0.7% previous.
- Germany’s Manufacturing PMI for May 2021 – Forecast 64, versus 64 previous.
- Euro Zone Manufacturing PMI for May 2021 – Forecast 62.8, versus 62.8 previous.
- UK Manufacturing PMI for May 2021 – Forecast 66.1, versus 66.1 previous.
- US Manufacturing Index for May 2021 – Forecast 61.5, versus 61.5 previous.
- US ISM Manufacturing Index for May 2021 – Forecast 60.7, versus 60.7 previous.
