Key Highlights
- GBP/USD declined and traded close to the 1.2560 support.
- A major bearish trend line is forming with resistance near 1.2670 on the 4-hour chart.
- EUR/USD is still at risk of more downsides below 1.0750.
- Gold prices are correcting gains from the $1,950 resistance.
GBP/USD Technical Analysis
The British Pound failed near 1.2745 and declined again against the US Dollar. GBP/USD traded below the 1.2650 support zone to move into a bearish zone.
Looking at the 4-hour chart, the pair traded close to the 1.2560 support. It is now trading well below the 100 simple moving average (red, 4 hours) and the 200 simple moving average (green, 4 hours).
A low is formed near 1.2577 and the pair is now consolidating losses. On the upside, an initial resistance is near the 1.2650 level. The first major resistance is near the 1.2670 level. There is also a major bearish trend line forming with resistance near 1.2670 on the same chart.
A close above 1.2670 could start a decent increase. In the stated case, the pair could rise toward the 1.2720 level. Any more gains could send the pair toward the 1.2750 level.
If not, the pair might start a fresh decline below the 1.2580 support. The next key support is seen near the 1.2560 level. If there is a move below 1.2560, the pair could dive toward 1.2500. Any more losses might send the pair toward the 1.2450 level.
Looking at EUR/USD, the pair is still trading in a bearish zone and there could be a fresh decline below the 1.0750 level.
Economic Releases
- Germany’s Services PMI for August 2023 – Forecast 47.3, versus 47.3 previous.
- Euro Zone Services PMI for August 2023 – Forecast 48.3, versus 48.3 previous.
- UK Services PMI for August 2023 – Forecast 48.7, versus 48.7 previous.
