GBP/USD Driving Gains Higher, EUR/USD Holds Strong.
- Below 1.1600 and 1.1500, the GBP/USD rate sharply dropped.
- On the 4-hours chart, a significant negative trend line is developing with resistance close to 1.1625.
- The resistance level of 0.9900 is currently being challenged by EUR/USD.
- In August 2022, the US ISM Services PMI could drop from 56.7 to 55.5.
Technical Analysis of GBP/USD
The British pound began a significant drop versus the US dollar from well above 1.1750. After a closure below 1.1650, the GBP/USD pair picked up speed.
The pair fell below the 1.1625 support, the 100 simple moving average (red, 4-hours), and the 200 simple moving average, according to the 4-hours chart.
When the pair finally moved below the 1.1500 mark, it traded as low as 1.143. Over the most recent low, the pair is presently consolidating losses. A first barrier is visible in the 1.1550 region on the upside.
The first significant resistance is located close to the 1.1625 and 1.1600 zones. On the same chart, a significant negative trend line with resistance close to 1.1625 is also developing.
A definite rise over 1.1625 could signal the beginning of a slow rebound. In the aforementioned scenario, the GBP/USD pair can move toward the 1.1750 resistance region.
If not, the pair may continue to fall below the 1.1460 mark.
The pair may move toward the 1.1380 level if the downside breaks below the 1.1460 support. The area around 1.1300 is the next significant support. Any more losses might necessitate a move towards 1.1200.
With respect to EUR/USD, the pair is still in a bearish area below the parity level and could experience a sudden drop below the 0.9900 level.
Economic News To Trade Today
- The S&P Services PMI Forecast for August 2022 is 44.1, up from the previous reading of 44.1.
- The US ISM Services Index for August 2022 Forecast 55.5 down from the previous 56.7
Author: Amogo Solomon
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