GBP/USD Accelerates Lower, Euro Dives Below Parity

Key Highlights

• GBP/USD declined heavily below 1.2000 and 1.1850.
• Many hurdles are forming near 1.1900 and 1.2000 on the 4-hours chart.
• EUR/USD declined heavily below the parity level.
• The US Manufacturing PMI could decline from 52.2 to 51.5 in August 2022 (Preliminary).

GBP/USD Technical Analysis

The British Pound failed to clear the 1.2250 resistance zone against the US Dollar. GBP/USD started a major decline and traded below the key 1.2000 support zone.

Looking at the 4-hours chart, the pair settled below the key 1.2000 support, the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours). There was also a break below a major bullish trend line with support near 1.2100.

The decline gained pace below the 1.1850 support level. If the bears remain in action, the pair could dive further below 1.1750.

The next major support is near the 1.1700 zone, below which the bears may even aim a move towards the 1.1500 level in the coming days.

On the upside, the pair is facing resistance near the 1.1850 level. The next major resistance is near the 1.1910 level. A clear move above the 1.1910 resistance might send the pair higher towards the 1.2000 level.

Looking at EUR/USD, the pair declined heavily below the 1.0000 support zone and there is a risk of more losses in the near term.

Economic Releases

• Germany’s Manufacturing PMI for August 2022 (Preliminary) – Forecast 48.3, versus 49.3 previous.
• Germany’s Services PMI for August 2022 (Preliminary) – Forecast 49.0, versus 49.7 previous.
• Euro Zone Manufacturing PMI for August 2022 (Preliminary) – Forecast 49.0, versus 49.8 previous.
• Euro Zone Services PMI for August 2022 (Preliminary) – Forecast 50.5, versus 51.2 previous.
• UK Manufacturing PMI for August 2022 (Preliminary) – Forecast 51.3, versus 52.1 previous.
• UK Services PMI for August 2022 (Preliminary) – Forecast 52.0, versus 52.6 previous.
• US Manufacturing PMI for August 2022 (Preliminary) – Forecast 51.5, versus 52.2 previous.
• US Services PMI for August 2022 (Preliminary) – Forecast 49.1, versus 47.3 previous.