Key Highlights
- GBP/USD started a fresh increase from the 1.2600 support.
- A key bullish trend line is forming with support near 1.2735 on the 4-hour chart.
- EUR/USD is eyeing a major upside break above 1.1000.
- USD/JPY started a downside correction below the 142.80 support.
GBP/USD Technical Analysis
The British Pound found support near the 1.2600 zone against the US Dollar. GBP/USD climbed higher and retested the main resistance at 1.2850.
Looking at the 4-hour chart, the pair settled above the 1.2750 level, the 200 simple moving average (green, 4 hours), and the 100 simple moving average (red, 4 hours).
However, the bears are still active near the 1.2850 resistance. The pair is now consolidating gains below 1.2850. There is a key bullish trend line forming with support near 1.2735 and the 100 simple moving average (red, 4 hours) on the same chart.
The next major support is near the 1.2690 level. If there is a downside break below the 1.2690 support, the pair could decline toward the 1.2650 level. The main support is still near 1.2600.
On the upside, the first major resistance is near the 1.2850 level. The next major resistance is near 1.2880. If there is a move above the 1.2880 resistance, the pair could rise toward 1.2965. Any more gains might send the pair toward the 1.3000 level.
Looking at EUR/USD, the pair is showing positive signs and it seems like the bulls could aim for a clear move above the 1.1000 resistance.
Economic Releases
- UK Claimant Count Change for June 2023 – Forecast -4.0K, versus -13.6K previous.
- UK ILO Unemployment Rate for May 2023 (3M) – Forecast 3.8%, versus 3.8% previous.
