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GBP/USD Remains In Uptrend But Bulls Lose Strength

Key Highlights

  • GBP/USD rallied toward 1.2740 before it corrected lower.
  • A key bullish trend line is forming with support near 1.2610 on the 4-hour chart.
  • EUR/USD corrected lower below the 1.0880 support zone.
  • The US ISM Services PMI could increase from 51.8 to 52.0 in Nov 2023.

 

GBP/USD Technical Analysis

The British Pound started a steady increase above the 1.2500 resistance against the US Dollar. GBP/USD even spiked above 1.2700 before the bears appeared.

Looking at the 4-hour chart, the pair settled above the 1.2600 pivot level, the 100 simple moving average (red, 4 hours), and the 200 simple moving average (green, 4 hours).

A high was formed near 1.2732 before the pair corrected lower. There was a move below the 1.2700 and 1.2765 levels. The pair even declined below the 23.6% Fib retracement level of the upward move from the 1.2376 swing low to the 1.2732 high.

It is now testing the 1.2620 support. There is also a key bullish trend line forming with support near 1.2610 on the same chart.

The next key support is near 1.2550 or the 50% Fib retracement level of the upward move from the 1.2376 swing low to the 1.2732 high, below which the pair could test the 1.2500 level in the near term. Any more losses might call for a move toward 1.2440.

On the upside, immediate resistance is near the 1.2680 level. The next key resistance is near the 1.2720 level. A close above the 1.2720 zone could open the doors for more upsides. The next stop for the bulls might be 1.2800.

Looking at EUR/USD, the pair started a downside correction, and it even broke the 1.0880 support zone.

Economic Releases

  • Euro Zone Services PMI for Nov 2023 – Forecast 48.2, versus 48.2 previous.
  • UK Services PMI for Nov 2023 – Forecast 50.5, versus 50.5 previous.
  • US Services PMI for Nov 2023 – Forecast 50.8, versus 50.8 previous.
  • US ISM Services PMI for Nov 2023 – Forecast 52.0, versus 51.8 previous.