Key Highlights
- GBP/USD corrected lower and tested the 1.2600 support.
- A major bearish trend line is forming with resistance near 1.2715 on the 4-hour chart.
- Gold price is attempting a fresh increase toward the $1,945 resistance.
- The US ISM Manufacturing Index declined from 46.9 to 46.0 in June 2023.
GBP/USD Technical Analysis
The British Pound started a downside correction below the 1.2750 support against the US Dollar. GBP/USD even traded below the 1.2680 level before it found support.
Looking at the 4-hour chart, the pair tested the 1.2600 support zone. It traded as low as 1.2590 and recently started a fresh increase. There was a move above the 1.2650 resistance zone and the 100 simple moving average (red, 4 hours).
It is also trading well above the 200 simple moving average (green, 4 hours). On the upside, the first major resistance is near 1.2720.
There is also a major bearish trend line forming with resistance near 1.2715 on the same chart. The trend line is close to the 50% Fib retracement level of the downward move from the 1.2848 swing high to the 1.2590 low.
If there is a move above the 1.2720 resistance, the pair could rise toward 1.2780. Any more gains might send GBP/USD toward the 1.2850 level.
Immediate support is near the 1.2650 level. The next major support is near the 1.2590 level. If there is a downside break below the 1.2590 support, the pair could decline toward the 1.2550 support and the 200 simple moving average (green, 4 hours).
Looking at EUR/USD, the pair is stable above the 1.0835 support and might start a move toward the 1.1000 resistance zone in the near term.
Economic Releases
- Germany’s Trade Balance for May 2023 – Forecast €17.0B, versus €18.4B previous.
