Key Highlights
- GBP/USD declined further and tested the 1.2550 region.
- A key bearish trend line is forming with resistance near 1.2725 on the 4-hour chart.
- EUR/USD could struggle to recover above the 1.0850 resistance.
- Crude oil price is aiming for a fresh increase toward $82.00.
GBP/USD Technical Analysis
The British Pound extended its decline below the 1.2650 level against the US Dollar. GBP/USD even broke the 1.2600 level to move further into a bearish zone.
Looking at the 4-hour chart, the pair settled below the 1.2650 level, the 100 simple moving average (red, 4 hours) and the 200 simple moving average (green, 4 hours).
The pair tested the 1.2550 zone. A low was formed near 1.2547 and the pair is now consolidating losses. It tested the 38.2% Fib retracement level of the downward move from the 1.2800 swing high to the 1.2547 low.
On the upside, an initial resistance is near the 1.2640 level. The first major resistance is near the 1.2675 level or the 50% Fib retracement level of the downward move from the 1.2800 swing high to the 1.2547 low.
The main resistance is forming near the 1.2720 zone. There is also a key bearish trend line forming with resistance near 1.2720 on the same chart.
A close above 1.2720 and then 1.2750 could start a decent increase. In the stated case, the pair could rise toward the 1.2880 level. Any more gains could start a fresh increase toward the 1.3000 level.
If not, the pair might continue to move down below the 1.2550 support. The next key support is seen near the 1.2500 level. If there is a move below 1.2500, the pair could dive toward 1.2320.
Looking at EUR/USD, the pair is still trading in a bearish zone and it could struggle to recover above the 1.0850 resistance.
Economic Releases
- US Housing Price Index for June 2023 (MoM) – Forecast +0.2%, versus +0.7% previous.
