Key Highlights
- GBP/USD started a downside correction from the 1.3050 zone.
- It traded below a connecting bullish trend line with support at 1.2970 on the 4-hour chart.
- Gold prices corrected gains and traded below $2,425.
- Oil prices extended losses and declined below the $80.00 level.
GBP/USD Technical Analysis
The British Pound remained in a positive zone above the 1.2850 level against the US Dollar. GBP/USD climbed above the 1.3000 resistance before the bears appeared.
Looking at the 4-hour chart, the pair tested the 1.3050 level, and settled above the 100 simple moving average (red, 4-hour) and the 200 simple moving average (green, 4-hour). Recently, the pair started a downside correction below the 1.3000 level.
It traded below a connecting bullish trend line with support at 1.2970 on the same chart. The bears pushed the pair below the 23.6% Fib retracement level of the upward move from the 1.2615 swing low to the 1.3044 high.
However, the bulls are active near 1.2900. If there is a fresh increase, the pair could face resistance near the 1.2940 level. The next resistance sits at 1.2965. The main hurdle sits at 1.3000.
A clear move above the 1.3000 resistance might send it toward the 1.3050 level. Any more gains might open the doors for a test of the 1.3150 zone in the coming days.
Immediate support is near the 1.2890 level. The next major support is near the 1.2830 level and the 50% Fib retracement level of the upward move from the 1.2615 swing low to the 1.3044 high. A downside break and close below the 1.2830 support zone could open the doors for more losses. In the stated case, EUR/USD might decline toward the 1.2750 level.
Looking at Gold, there was a fresh bearish reaction, and the bears were able to push the price below the $2,425 level.
Economic Releases
- Euro Zone Manufacturing PMI for July 2024 (Preliminary) – Forecast 46.1, versus 45.8 previous.
- Euro Zone Services PMI for July 2024 (Preliminary) – Forecast 53.0, versus 52.8 previous.
- UK Manufacturing PMI for July 2024 (Preliminary) – Forecast 51.1, versus 50.9 previous.
- UK Services PMI for July 2024 (Preliminary) – Forecast 52.5, versus 52.1 previous.
- US Manufacturing PMI for July 2024 (Preliminary) – Forecast 51.7, versus 51.6 previous.
- US Services PMI for July 2024 (Preliminary) – Forecast 54.4, versus 55.3 previous.
