Key Highlights
- GBP/USD failed to surpass 1.4000 and corrected gains.
- A key bearish trend line is forming with resistance near 1.3950 on the 4-hours chart.
- EUR/USD is still trading well below the main 1.2000 resistance.
- NZD/USD and AUD/USD remain at a risk of more downsides.
GBP/USD Technical Analysis
After a major decline, the British Pound found support near 1.3786 against the US Dollar. GBP/USD started a decent recovery above 1.3850, but it is still facing a lot of hurdles.
Looking at the 4-hours chart, the pair recovered above the 1.3900 and 1.3920 resistance levels. I even broke the 50% Fib retracement level of the last key decline from the 1.4132 swing high to 1.3786 low.
However, the pair failed to break the 1.4000 resistance. It also remained well below the 100 simple moving average (red, 4-hours) and the 200 simple moving average (green, 4-hours).
It seems like the pair was rejected near the 61.8% Fib retracement level of the last key decline from the 1.4132 swing high to 1.3786 low. There is also a key bearish trend line forming with resistance near 1.3950 on the same chart.
To move into a positive zone, the pair must surpass the trend line and then gain pace above the 1.4000 resistance. If not, it could resume its decline towards the 1.3750 and 1.3700 levels in the near term.
Similarly, EUR/USD is facing a strong resistance near the 1.2000 level. Conversely, crude oil price is consolidating gains above the key $70.00 zone.
Economic Releases
- Euro Zone Consumer Confidence for June 2021 – Forecast -3.3, versus -3.3 previous.
- German Consumer Price Index for June 2021 (YoY) (Prelim) – Forecast +2.3%, versus +2.5% previous.
- German Consumer Price Index for June 2021 (MoM) (Prelim) – Forecast +0.4%, versus +0.5% previous.
