Key Highlights
- GBP/USD started a recovery wave above 1.3350 and 1.3400.
- A major bearish trend line is forming with resistance near 1.3475 on the 4-hour chart.
- EUR/USD is struggling to clear the 1.1750 and 1.1780 resistance levels.
- Gold extended gains to a new record high above $3,870.
GBP/USD Technical Analysis
The British Pound found support near 1.3320 and recovered versus the US Dollar. GBP/USD climbed above the 1.3350 and 1.3400 resistance levels.
Looking at the 4-hour chart, the pair managed to recover above the 23.6% Fib retracement level of the downward move from the 1.3726 swing high to the 1.3323 low. However, the pair faces many hurdles on the upside.
Immediate resistance could be 1.3470. There is also a major bearish trend line forming with resistance near 1.3475 on the same chart. A clear move above the trend line could send the pair toward the 1.3525 resistance.
The 100 simple moving average (red, 4-hour) and the 200 simple moving average (green, 4-hour) are near 1.3520 to act as a barrier along with the 50% Fib retracement level of the downward move from the 1.3726 swing high to the 1.3323 low.
A close above 1.3525 could open the doors for a fresh increase. If not, GBP/USD could decline again. On the downside, there is key support at 1.3400.
The next area of interest might be 1.3350. The main support could be 1.3320. Any more losses might increase selling pressure and send the pair toward 1.3250.
Looking at EUR/USD, the pair attempted to recover but the bears are still active below the 1.1800 pivot level.
Upcoming Key Economic Events:
- Euro Zone Manufacturing PMI for Sep 2025 – Forecast 49.5, versus 49.5 previous.
- UK Manufacturing PMI for Sep 2025 – Forecast 46.2, versus 46.2 previous.
- US ISM Manufacturing Index for Sep 2025 – Forecast 49.0, versus 48.7 previous.
