GBP/USD Resolves Lower, US Dollar Regaining Across-Board
- From the 1.1500 resistance area, the GBP/USD pair started to fall again.
- On the 4-hour chart, it traded below a significant bullish trend line that had support at 1.1175.
- Selling pressure increased against the USD pairs EUR/USD, AUD/USD, and NZD/USD.
- The number of UK claimants may change by -11.4K in September 2022.
Technical Analysis of GBP/USD
In relation to the US Dollar, the British Pound had trouble breaking through the 1.1500 resistance level. Below the level of 1.1400, GBP/USD made a brief top and began a new drop.
The pair dropped below the 1.1350 and 1.1300 levels, according to the 4-hours chart. A crucial bullish trend line with support at 1.1175 was clearly crossed below. The price of the pair dropped under the 23.6% Fibonacci retracement level of the upward trend from the 1.0335 swing low to 1.1495 high.
The 100 simple moving average (red, 4-hours), the 200 simple moving average, and the 1.1200 level were all broken by the pair (green, 4-hours).
An initial support for the downside is located close to the 1.0950 level. The 1.0915 level serves as the primary support. It is quite near to where the upward movement from the 1.0335 swing low to 1.1495 high is retraced 50% on the Fibonacci scale.
The pair may move toward the 1.0800 level if the downside breaks below the 1.0915 zone. The pair may begin a new increase if it maintains its position above the 1.0915 support level. Around the 1.1175 level, there is instant resistance.
Near the 1.1250 level comes the next significant obstacle. The pair may advance toward the 1.1320 level if there is a definite move above the 1.1250 level. The next significant obstacle might be close to the 1.1500 level.
In terms of EUR/USD, the pair started a new fall after failing to pass through 1.0000. The pair may decline under 0.9650 if the bears continue to be active.
Economic News To Trade Today
- UK claimant count change in September 2022 is predicted to be -11.4K, down from 6.3K in the past.
- 3.6% is the predicted UK ILO unemployment rate for August 2022 (3M), compared to 3.6 previous
Author: Amogo Solomon
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