Key Highlights
- GBP/USD struggled near 1.3260 and started a downside correction.
- It traded below a key bullish trend line with support at 1.3140 on the 4-hour chart.
- EUR/USD is struggling to start a fresh increase above 1.1100.
- The UK Claimant count could change by 95.5K in August 2024.
GBP/USD Technical Analysis
The British Pound faced heavy resistance near 1.3250 against the US Dollar. GBP/USD formed a short-term top and started a downside correction below 1.3200.
Looking at the 4-hour chart, the pair traded below the 23.6% Fib retracement level of the upward move from the 1.2664 swing low to the 1.3266 high. It also traded below a key bullish trend line with support at 1.3140.
The pair broke the 1.3100 level and the 100 simple moving average (red, 4-hour), but it stayed above the 200 simple moving average (green, 4-hour).
On the downside, immediate support sits near the 1.3035 level. The next key support sits near the 1.2965 level and the 200 simple moving average (green, 4-hour). It is close to the 50% Fib retracement level of the upward move from the 1.2664 swing low to the 1.3266 high.
A downside break below the 1.2965 level could set the pace for a larger decline. The next major support is near the 1.2800 level. On the upside, the pair could face resistance near the 1.3140 level.
The next key resistance sits near the 1.3180 level. A clear move above the 1.3180 level could set the pace for a move toward the 1.3250 zone. Any more gains might call for a test of the 1.3350 zone.
Looking at EUR/USD, the pair struggled to start a fresh increase above 1.1100 and might extend its downside correction.
Upcoming Economic Events:
- UK Claimant Count Change for August 2024 – Forecast 95.5K, versus 135K previous.
- UK ILO Unemployment Rate for July 2024 (3M) – Forecast 4.1%, versus 4.2% previous.
