Key Highlights
- GBP/USD declined below the 1.3000 and 1.2900 levels.
- A connecting bearish trend line is forming with resistance near 1.3020 on the 4-hour chart.
- EUR/USD might struggle to clear the 1.1075 resistance zone.
- The US ISM Manufacturing Index could rise from 46.0 to 46.5 in July 2023.
GBP/USD Technical Analysis
The British started a fresh decline from the 1.3140 zone against the US Dollar. GBP/USD declined below the 1.3000 and 1.2900 support levels.
Looking at the 4-hour chart, the pair even traded below the 1.2880 support and the 100 simple moving average (red, 4 hours). Finally, the pair found bids near the 1.2780 zone and the 200 simple moving average (green, 4 hours).
A low is formed near 1.2763 and the pair is now attempting a recovery wave. There was a minor increase above the 1.2840 level.
On the upside, the pair is facing resistance near the 1.2920 level and the 100 simple moving average (red, 4 hours). The first major resistance is near 1.2950. The main resistance could be near the 1.3000 zone.
There is also a connecting bearish trend line forming with resistance near 1.3020 on the same chart. A close above the trend line could set the pace for a fresh increase toward 1.3140.
If not, the pair could start a fresh decline. On the downside, the pair might find bids near the 1.2800 level. The next major support is near 1.2765, below which GBP/USD could slide toward the 1.2660 zone.
Looking at EUR/USD, the pair also attempted a recovery wave but it won’t be easy to settle above the 1.075 resistance zone.
Economic Releases
- Germany’s Manufacturing PMI for July 2023 – Forecast 38.8, versus 38.8 previous.
- Euro Zone Manufacturing PMI for July 2023 – Forecast 42.7, versus 42.7 previous.
- UK Manufacturing PMI for July 2023 – Forecast 45.0, versus 45.0 previous.
- US Manufacturing PMI for July 2023 – Forecast 49.0, versus 49.0 previous.
- US ISM Manufacturing Index for July 2023 – Forecast 46.5, versus 46.0 previous.
