(function() { var didInit = false; function initMunchkin() { if(didInit === false) { didInit = true; Munchkin.init('105-GAR-921'); } } var s = document.createElement('script'); s.type = 'text/javascript'; s.defer = true; s.src = '//munchkin.marketo.net/munchkin.js'; s.onreadystatechange = function() { if (this.readyState == 'complete' || this.readyState == 'loaded') { initMunchkin(); } }; s.onload = initMunchkin; document.getElementsByTagName('head')[0].appendChild(s); })();(function(h,o,t,j,a,r){ h.hj=h.hj||function(){(h.hj.q=h.hj.q||[]).push(arguments)}; h._hjSettings={hjid:1422437,hjsv:6}; a=o.getElementsByTagName('head')[0]; r=o.createElement('script');r.defer=1; r.src=t+h._hjSettings.hjid+j+h._hjSettings.hjsv; a.appendChild(r); })(window,document,'https://static.hotjar.com/c/hotjar-','.js?sv=');

GBP/USD Sees Pullback But Key Support Intact

Article background

Aayush Jindal

Key Highlights

  • GBP/USD started a downside correction from the 1.3050 zone.
  • It traded below a connecting bullish trend line with support at 1.2970 on the 4-hour chart.
  • Gold prices corrected gains and traded below $2,425.
  • Oil prices extended losses and declined below the $80.00 level.

GBP/USD Technical Analysis

The British Pound remained in a positive zone above the 1.2850 level against the US Dollar. GBP/USD climbed above the 1.3000 resistance before the bears appeared.

Looking at the 4-hour chart, the pair tested the 1.3050 level, and settled above the 100 simple moving average (red, 4-hour) and the 200 simple moving average (green, 4-hour). Recently, the pair started a downside correction below the 1.3000 level.

It traded below a connecting bullish trend line with support at 1.2970 on the same chart. The bears pushed the pair below the 23.6% Fib retracement level of the upward move from the 1.2615 swing low to the 1.3044 high.

However, the bulls are active near 1.2900. If there is a fresh increase, the pair could face resistance near the 1.2940 level. The next resistance sits at 1.2965. The main hurdle sits at 1.3000.

A clear move above the 1.3000 resistance might send it toward the 1.3050 level. Any more gains might open the doors for a test of the 1.3150 zone in the coming days.

Immediate support is near the 1.2890 level. The next major support is near the 1.2830 level and the 50% Fib retracement level of the upward move from the 1.2615 swing low to the 1.3044 high. A downside break and close below the 1.2830 support zone could open the doors for more losses. In the stated case, EUR/USD might decline toward the 1.2750 level.

Looking at Gold, there was a fresh bearish reaction, and the bears were able to push the price below the $2,425 level.

Economic Releases

  • Euro Zone Manufacturing PMI for July 2024 (Preliminary) – Forecast 46.1, versus 45.8 previous.
  • Euro Zone Services PMI for July 2024 (Preliminary) – Forecast 53.0, versus 52.8 previous.
  • UK Manufacturing PMI for July 2024 (Preliminary) – Forecast 51.1, versus 50.9 previous.
  • UK Services PMI for July 2024 (Preliminary) – Forecast 52.5, versus 52.1 previous.
  • US Manufacturing PMI for July 2024 (Preliminary) – Forecast 51.7, versus 51.6 previous.
  • US Services PMI for July 2024 (Preliminary) – Forecast 54.4, versus 55.3 previous.
Great
Trustpilot
Open a Live accountOpen a Demo account