Key Highlights
- EUR/USD started a fresh increase above the 1.3900 resistance zone.
- It broke a crucial bearish trend line at 1.3825 on the 4-hours chart.
- EUR/USD is facing an uphill task near the 1.1900 resistance zone.
- USD/JPY is declining and it could extend losses below 109.00.
GBP/USD Technical Analysis
The British Pound started a strong increase above the 1.3820 resistance against the US Dollar. GBP/USD surpassed the 1.3920 resistance to move further into a bullish zone.
Looking at the 4-hours chart, the pair even broke the 1.3950 level. It settled nicely above the 1.3900 zone, the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours).
A high was formed near 1.3983 before there was a downside correction. The pair tested the 23.6% Fib retracement level of the upward move from the 1.3571 swing low to 1.3983 high.
The first major support on the downside is near the 1.3840 level and the 200 simple moving average (green, 4-hours). The main support is forming near 1.3800 and the 100 simple moving average (red, 4-hours).
It is close to the 50% Fib retracement level of the upward move from the 1.3571 swing low to 1.3983 high. Any more losses might call for a move towards the 1.3620 support.
On the upside, the pair is likely to face a strong resistance near 1.3980 and 1.4000. Any more gains could open the doors for a move towards the 1.4200 zone.
Looking at EUR/USD, the pair is showing positive signs, but it must clear 1.1900 to continue higher in the coming sessions.
Economic Releases
- Canada’s Manufacturing PMI for July 2021 – Forecast 56.4, versus 56.5 previous.
- US Factory Orders for June 2021 (MoM) – Forecast +1.0%, versus +1.7% previous.
