Technical Outlook

-GBPUSD has recently broken the resistance and is moving up.

-EURUSD recently broke above the 50MA and the bullish channel. Traders might have a good trading opportunity when the price reaches the resistance. 

UK (GBP): GBP CPI  (YOY)

The Consumer Price Index (CPI) measures the change in the price of goods and services from the perspective of the consumer. It is a key way to measure changes in purchasing trends and inflation. The last CPI was 8.3%, higher than the forecast of 8.1%.

The report is due Wednesday,  21 June 06:00 GMT

GBPUSD Technical Analysis:

GBPUSD is in an uptrend and has recently broken the resistance. A golden cross was formed on the chart on 12th Jan 2023, with led to a price surge of 3.69%. A correction occurred in the subsequent trading sessions, pulling the price to a bottom of $1.18033.

The buyers entered the market, pushing the price and trading inside the bullish channel, halting and forming a resistance at $1.26539. The price then entered the consolidation state, trading between the support and resistance of $1.23454 and $1.26539.

Currently, the price is trading both above the 50 and 200MA while the RSI line is at 70.51 showing higher overbought sentiment of the asset. As GBPUSD is in an uptrend, traders must look into the overall confluence before entering the market. Recommended action is to wait for the price to form a break and retest pattern.

Pivot Points: GBPUSD

US (USD): INITIAL JOBLESS CLAIMS

Initial Jobless Claims measures the number of individuals who filed for unemployment insurance for the first time during the past week. This is the earliest U.S. economic data, but the market impact varies from week to week. Last week’s jobless claims came to 262K, higher than the forecast of 250K.

The report is due Thursday, 22 June 12:30 GMT

EURUSD Technical Analysis:

EURUSD was in a pull phase, with price trading inside the bearish channel. For a long, the price was trading above the 200MA and below the 50MA showing short-term due range movement.

There are multiple candle rejections around the psychological level of $1.10782, which the price touched thrice but could not break above it when the bulls were active and in control. The price of $1.10782 now is acting as a resistance.

When the multiple candle rejection pattern was formed, the RSI showed medium bearish RSI divergence signifying that bearish pressure was due, and in the next trading session, the sellers were in control until now when RSI showed the oversold condition, and the market came up. The price has recently broken the bearish channel and the 50MA.

The price is now very close to the resistance of $1.10782, which it tested twice in the previous trading sessions. Traders will have a good trading opportunity when the price is close to this resistance. If the price breaks above the resistance, traders may take BUY considering the overall market condition, while if the price does not break, the resistance market may come down.

Pivot Points: EURUSD

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