Key Highlights
- GBP/USD is attempting a fresh increase above the 1.2700 zone.
- A major bearish trend line is forming with resistance near 1.2820 on the 4-hour chart.
- EUR/USD is facing an uphill task near the 1.1000 zone.
- Gold prices are correcting lower below $1,940.
GBP/USD Technical Analysis
The British Pound declined below the 1.2800 pivot level against the US Dollar. GBP/USD even tested the 1.2620 zone where the bulls emerged.
Looking at the 4-hour chart, the pair settled below the 1.2750 level and the 100 simple moving average (red, 4 hours), and the 200 simple moving average (green, 4 hours).
The pair is now attempting a fresh increase above the 1.2700 zone. There was a move above the 23.6% Fib retracement level of the downward move from the 1.2995 swing high to the 1.2620 low.
On the upside, the pair is facing resistance near the 1.2800 level. There is also a major bearish trend line forming with resistance near 1.2820 on the same chart. The trend line is near the 50% Fib retracement level of the downward move from the 1.2995 swing high to the 1.2620 low.
A close above the 1.2820 resistance could push the pair toward 1.2950. Any more gains could start a fresh increase toward the 1.3000 level.
Initial support is near the 1.2700 level. The next major support is near 1.2620, below which GBP/USD could gain bearish momentum. In the stated case, the pair could test the 1.2500 support.
Looking at EUR/USD, the pair is struggling to clear the 1.1000 resistance and might start another decline toward the 1.0850 level.
Economic Releases
- US Goods Trade Balance for June 2023 – Forecast $-85.5B, versus $-87.8B previous.
