Key Highlights
- GBP/USD started a recovery wave from the 1.2665 zone.
- It broke a major bearish trend line with resistance at 1.2750 on the 4-hour chart.
- Gold prices could again aim for a move above the $2,500 resistance.
- The UK Claimant count could change by 14.5K in July 2024.
GBP/USD Technical Analysis
The British Pound found support near 1.2665 after heavy losses against the US Dollar. GBP/USD formed a base and started a recovery wave above 1.2700.
Looking at the 4-hour chart, the pair broke a major bearish trend line with resistance at 1.2750. There was a move above the 23.6% Fib retracement of the downward move from the 1.3044 swing high to the 1.2664 low.
However, the pair could face many hurdles on the upside. The first key resistance sits near the 1.2800 zone, the 200 simple moving average (green, 4-hour), and the 100 simple moving average (red, 4-hour).
The 50% Fib retracement of the downward move from the 1.3044 swing high to the 1.2664 low is also near the 1.2800 zone. The next resistance sits at 1.2850. A clear move above 1.2850 could open the door to more gains.
In the stated case, the pair could rise and test 1.2955. Any more gains could send the pair toward the 1.3050 level. Immediate support is near the 1.2740 level.
The next major support is near the 1.2680 level. A downside break and close below the 1.2680 support zone could open the doors for more losses. In the stated case, GBP/USD might decline toward the 1.2550 level.
Looking at Gold, the price started a fresh increase and there are chances that the bulls might aim for a move above the $2,500 level.
Economic Releases
- UK Claimant Count Change for July 2024 – Forecast 14.5K, versus 32.3K previous.
- UK ILO Unemployment Rate for June 2024 (3M) – Forecast 4.5%, versus 4.4% previous.
