On the economic calendar for the United Kingdom and the pound, this morning is a rather busy one. After the release of the inflation numbers for the month of May in the UK, the attention of the market switches to the very significant private sector PMIs for the month of June.
In order for the pound to reach the First Major Resistance Level located at $1.2330, it will first need to break through the pivot at $1.22450. A greater willingness among investors to take on risk would provide support for a breakthrough from Wednesday’s high of $1.23145. When looking at the exponential moving averages and the candlestick chart for the 4-hour time frame (below), we can see that this is a bearish indicator.

In this case, support is found at 1.21590, while the resistance is found at 1.22530. Above the price line, at 1.22110, is the pivot point. To put it simply, the EMA of 10 is in a bearish movement below the EMA of 200 and the EMA of 100 which are slightly moving downward. Stochastic is moving toward the oversold zone. The RSI is moving under the level of 50 and the ADX is showing weak trend. The MACD histogram is in negative territory with the signals showing a downtrend.

• There is resistance at 1.22530, followed by resistance at 1.23050 and 1.23470.
• There is support at 1.21590. Below, there is 1.21170 and 1.20650.

Note: We do not suggest any investment advice, and these analyses are just to increase the traders’ awareness but not a certain instruction for trading.