Key Highlights
- GBP/USD traded below the 1.2750 support zone.
- A major bearish trend line is forming with resistance near 1.2770 on the 4-hour chart.
- EUR/USD spiked below the 1.0920 support zone.
- Gold prices are showing bearish signs below $1,920.
GBP/USD Technical Analysis
The British Pound started a fresh decline from well above 1.2920 against the US Dollar. GBP/USD traded below the 1.2850 support to move into a bearish zone.
Looking at the 4-hour chart, the pair settled below the 1.2800 level, the 100 simple moving average (red, 4 hours), and the 200 simple moving average (green, 4 hours).
The pair also traded 1.2750 support zone and tested 1.2620. The pair is now consolidating losses and facing many hurdles on the upside, starting with 1.2715. The next major resistance is near the 1.2740 level.
There is also a major bearish trend line forming with resistance near 1.2770 on the same chart. A close above the 1.2770 resistance could push the pair toward 1.2850. Any more gains could start a fresh increase toward the 1.2920 level.
Initial support is near the 1.2620 level. The next major support is near 1.2550, below which GBP/USD could gain bearish momentum. In the stated case, the pair could test the 1.2465 support.
Looking at EUR/USD, the pair is trading in a bearish zone and there could be a move toward the 1.0850 level in the near term.
Economic Releases
- UK Claimant Count Change March 2023 – Forecast 13.0K, versus 25.7K previous.
- UK ILO Unemployment Rate Feb 2023 (3M) – Forecast 4.0%, versus 4.0% previous.
- Canadian Consumer Price Index for July 2023 (MoM) – Forecast +0.3%, versus +0.1% previous.
- Canadian Consumer Price Index for July 2023 (YoY) – Forecast +3.0%, versus +2.8% previous.
