Key Highlights
- GBP/USD is attempting a recovery wave from the 1.2445 zone.
- A key bearish trend line is forming with resistance near 1.2600 on the 4-hour chart.
- EUR/USD is consolidating losses below the 1.0800 pivot level.
- USD/JPY failed to surpass 147.80 and corrected gains.
GBP/USD Technical Analysis
The British Pound found support near the 1.2445 zone against the US Dollar. GBP/USD formed a short-term base and recently started an upside correction above 1.2480.
Looking at the 4-hour chart, the pair was able to clear the 1.2500 level but is still well below the 100 simple moving average (red, 4 hours) and the 200 simple moving average (green, 4 hours).
It broke the 23.6% Fib retracement level of the downward move from the 1.2746 swing high to the 1.2445 low. On the upside, an initial resistance is near the 1.2560 level.
The first major resistance is near the 1.2600 handle. There is also a key bearish trend line forming with resistance near 1.2600 on the same chart. The trend line is close to the 50% Fib retracement level of the downward move from the 1.2746 swing high to the 1.2445 low.
The next major resistance is near the 1.2635 level. A close above 1.2635 could start another decent increase. In the stated case, the pair could rise toward the 1.2700 level.
On the downside, immediate support is near 1.2480. The next key support is seen near the 1.2445 level. The first major support is near 1.2420. If there is a move below 1.2420, the pair could dive toward 1.2340. Any more losses might send the pair toward the 1.2250 level.
Looking at EUR/USD, the pair is attempting a short-term upside correction but upsides might be limited above 1.0800.
Economic Releases
- German ZEW Business Economic Sentiment Index for Sep 2023 – Forecast -15.0, versus -12.3 previous.
- UK Claimant Count Change for Aug 2023 – Forecast 12.0K, versus 29.0K previous.
- UK ILO Unemployment Rate for July 2023 (3M) – Forecast 4.3%, versus 4.2% previous.
