Technical Analysis: GBPUSD

GBPUSD hit a one-month low

On Wednesday, GBPUSD continued falling. It reached the 1.340 mark at one point, which marked the lowest level since 22^nd May.

UK inflation declined

UK CPI, y/y (May) fell from 3.5% to 3.4% Vs. 3.4% (forecast), according to the data from the Office for National Statistics. UL CPI, m/m (May) fell from 1.2% to 0.2% Vs. 0.2% (forecast).

The USDX was boosted

On Wednesday, as the Fed kept the interest rate unchanged and hinted that the interest rate will be cut at a slower pace, the USDX stood at the 99 mark at one point. It ended up 0.03% at 98.85.

Technically speaking, the bearish market trend prevailed in the short term

the Chart of the Day

On the chart of the day, GBPUSD fell from a high level. It is likely to retreat in the short term. In terms of technical indicators, MACD went downwards after death cross occurred, showing that GBPUSD will decline further. Investors should focus on whether GBPUSD will break through the support at 1.336. It will decline with potential support at 1.325 if it breaks below 1.336.

4-hour chart

On the 4-hour chart, GBPUSD was prone to fluctuation and declined. The bearish market trend prevailed. In terms of technical indicators, KDJ went downwards after death cross occurred, showing that the market trend is bearish. Investors should focus on whether GBPUSD will break through the resistance at 1.344. It will fall if it rebounds but is capped at 1.344.

Key resistance: 1.344,1.350

Key support: 1.336,1.325

Generally speaking, GBPUSD is more likely to fall in the short term. Investors should focus on the BOE’s interest rate decision during the day.