Key Highlights
- GBP/USD is attempting a recovery wave from the 1.3275 zone.
- It surpassed a connecting bearish trend line at 1.3370 on the 4-hours chart.
- EUR/USD could struggle if it stays below the 1.1280 resistance.
- The US ISM Manufacturing Index could increase from 57.6 to 58.0 in Feb 2022.
GBP/USD Technical Analysis
The British started a fresh decline from well above 1.3600 against the US Dollar. GBP/USD declined below the 1.3450 support zone to enter a bearish zone.
Looking at the 4-hours chart, the pair traded below the 1.3350 support zone. There was a close below the 1.3400 support zone, the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours).
It even declined below 1.3300 and traded as low as 1.3274. It is now correcting losses above the 1.3320 resistance. There was a move above a connecting bearish trend line at 1.3370 on the same chart.
On the upside, the pair is facing a strong resistance near the 1.3440 and 1.3450 levels. It is near the 50% Fib retracement level of the downward move from the 1.3620 swing high to 1.3274 low. The next major resistance sits near the 1.3480 zone and the 100 simple moving average (red, 4-hours).
A close above 1.3480 might send GBP/USD higher towards 1.1450. On the downside, the pair might find bids near the 1.3350 level. If there are additional losses, the pair might dive to 1.3275.
Looking at EUR/USD, the pair is still showing bearish signs below the 1.1280 and 1.1320 levels. Besides, gold price is consolidating near the $1,900 level.
Economic Release
- Germany’s Manufacturing PMI for Feb 2022 – Forecast 58.5, versus 58.5 previous.
- Euro Zone Manufacturing PMI for Feb 2022 – Forecast 58.4, versus 58.4 previous.
- UK Manufacturing PMI for Feb 2022 – Forecast 57.3, versus 57.3 previous.
- US Manufacturing PMI for Feb 2022 – Forecast 57.5, versus 57.5 previous.
- US ISM Manufacturing Index for Feb 2022 – Forecast 58.0, versus 57.6 previous.
