Key Highlights
- GBP/USD started a downside correction from the 1.2860 resistance.
- It traded below a key bullish trend line with support at 1.2720 on the 4-hour chart.
- EUR/USD is eyeing a recovery wave from the 1.0665 support zone.
- Oil prices are moving higher toward the $80.80 resistance.
GBP/USD Technical Analysis
The British Pound peaked near 1.2860 and started a fresh decline against the US Dollar. GBP/USD traded below 1.2800 and 1.2740 support levels to enter a short-term bearish zone.
Looking at the 4-hour chart, the pair traded below a key bullish trend line with support at 1.2720. The bears were able to push the pair below the 100 simple moving average (red, 4-hour) and it tested the 200 simple moving average (green, 4-hour).
A low was formed at 1.2655 and the pair is now consolidating losses. If there is a fresh increase, the pair might face resistance near the 23.6% Fib retracement level of the downward move from the 1.2860 swing high to the 1.2655 low.
The first major resistance is near the 1.2740 level. A clear move above the 1.2740 resistance might send it toward the 1.2780 level. Any more gains might call for a move toward the 1.2860 level in the near term.
If not, the pair might dip again. Immediate support is near the 1.2655 level. The next major support is near the 1.2620 zone. A downside break and close below the 1.2620 support zone could open the doors for a larger decline. In the stated case, the pair could decline toward the 1.2550 level.
Looking at EUR/USD, the pair found support near the 1.0665 zone and it could now aim for a recovery wave in the near term.
Economic Releases
- US Retail Sales for May 2024 (MoM) – Forecast +0.2%, versus 0% previous.
- Fed’s Logan speech.
