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GBP/USD Will Likely Target Highs Above 1.2200, FOMC Meeting Next

January 4, 2023 Uncategorized

Key Take-Aways

  • GBP/USD started correcting downward from the 1.2450 area.
  • On the 4-hours chart, a crucial bearish trend line is developing with resistance close to 1.2080.
  • After correcting downward from the 1.0735 level, the EUR/USD fell under 1.0620.
  • The US ISM Manufacturing Index could drop to 48.5 in December 2022 from 49.0 in 2022.

Technical Analysis of GBP/USD

The British pound’s recent slide versus the US dollar began far above the 1.2400 mark. GBP/USD fell below the 1.2200 level of support before entering a short-term negative area.

The pair even dropped down the 1.2000 barrier, according to the 4-hour chart. The 4-hour red 100 simple moving average, 200 simple moving average, and the 1.2050 barrier were all closed below.

The pair just began a minor upward correction and traded as low as 1.1900. The pair has risen above 1.2000, but the upside faces many obstacles.

An early obstacle on the upward is located close to the 1.2080 level. On the same chart, a significant bearish trend line is also developing, with resistance located close to 1.2080. Near 1.2150 may serve as the next significant obstacle.

The pair even dropped down the 1.2000 barrier, according to the 4-hour chart. The 4-hour red 100 simple moving average, 200 simple moving average, and the 1.2050 barrier were all closed below.

The pair just began a minor upward correction and traded as low as 1.1900. The pair has risen above 1.2000, but the upside faces many obstacles.

An early obstacle on the upward is located close to the 1.2080 level. On the same chart, a significant bearish trend line is also developing, with resistance located close to 1.2080. Near 1.2150 may serve as the next significant obstacle.

Economic News To Trade Today

  • German services PMI for December 2022 is predicted to be 49.0, up from 49.0 last month.
  • Forecast Euro Zone Services PMI for December 2022: 49.1, up from 49.1 previously.
  • Forecasted US ISM Manufacturing Index for December 2022 is 48.5, down from the previous reading of 49.0.
  • Minutes of FOMC meetings.
Author:
Amogo Solomon is a Broker-Dealer/Market Research analyst and writer in ACT Brokers with a background in Computer Science, Data Analytics, and Forex Broker Dealing. He specializes in Forex Dealing, markets Analysis, Currency research, forex fundamental and technical analysis, and Monitoring of Forex trends, Stocks, Equities, Cryptos, and Commodities. He possesses strong technical and analytical skills and is well known for his entertaining and informative analysis of the global economy, fiat currency, commodities, Stocks, Indexes, Futures, and Options markets. He held a Bachelor's degree in Computer Science and Nanodegree in Programming for Data Science Enterprise.

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