GBP/USD Faces Downside Pressures, US Dollars Gaining Massively Across-Board
- Below 1.2000 and 1.1850, the GBP/USD rate sharply dropped.
- On the 4-hours chart, many obstacles are forming close to 1.1900 and 1.2000.
- Below the parity mark, the EUR/USD price sharply dropped.
- In August 2022, the US Manufacturing PMI could drop from 52.2 to 51.5.
Technical Analysis of GBP/USD
Against the US Dollar, the British Pound was unable to overcome the 1.2250 resistance level. GBP/USD began a significant fall and traded beneath the crucial 1.2000 support region.
The pair has consolidated below the crucial 1.2000 support, the 100 simple moving average (4-hour red), and the 200 simple moving average, according to the 4-hour chart. A significant bullish trend line with support close to 1.2100 was also broken below.
Below the 1.1850 support level, the drop accelerated. If the bears continue to trade, the pair may fall even lower than 1.1750.
Below the 1.1700 zone, where the bears may potentially attempt a move towards the 1.1500 level in the coming days, is the next significant support.
Economic News to Trade Today
- Manufacturing PMI for Germany in August 2022 (Preliminary) – Forecast 48.3, down from 49.3.
- Services PMI for Germany in August 2022 (Preliminary) – Forecast 49.0, down from 49.7 in the past.
- The Euro Zone Manufacturing PMI in August 2022 (Preliminary) – Forecast 49.0, down from the previous 49.8.
- The Euro Zone Services PMI for August 2022 (Preliminary) – Forecast 50.5, down from the previous reading of 51.2.
- The UK Manufacturing PMI for August 2022 (Preliminary) – Forecast 51.3, down from the previous reading of 52.1.
- The UK Services PMI for August 2022 (Preliminary) – Forecast 52.0, down from the previous reading of 52.6.
- The US Manufacturing PMI for August 2022 (preliminary) – Forecast 51.5, down from the previous reading of 52.2.
- The US Services PMI for August 2022 (Preliminary) – Forecast 49.1, up from the previous reading of 47.3.
Author: Amogo Solomon
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