Key Highlights
- GBP/USD declined further below 1.3350 and tested 1.3300.
- A major bearish trend line is forming with resistance at 1.3385 on the 4-hour chart.
- EUR/USD extended losses below 1.1600 and started a consolidation phase.
- Gold rallied to a fresh all-time high above $4,175 before it faced resistance.
GBP/USD Technical Analysis
The British Pound started a major decline below 1.3400 against the US Dollar. GBP/USD dropped below the 1.3350 and 1.3300 levels to enter a bearish zone.
Looking at the 4-hour chart, the pair settled below the 100 simple moving average (red, 4-hour) and the 200 simple moving average (green, 4-hour). The pair even tested the 1.3250 zone and recently started a consolidation phase.
On the upside, the pair faces resistance near the 1.3350 level. It is close to the 23.6% Fib retracement level of the recent decline from the 1.3527 swing high to the 1.3248 low.
The main hurdle could be 1.3385. There is also a major bearish trend line forming with resistance at 1.3385 and the 50% Fib retracement level of the recent decline from the 1.3527 swing high to the 1.3248 low. A close above the trend line resistance might push the pair to the 100 simple moving average (red, 4-hour) or even the 200 simple moving average (green, 4-hour).
On the downside, the pair might find support at 1.3250. The main support might be 1.3200. A close above 1.3200 could send the pair toward 1.3120. Any more losses might open the doors for a test of 1.3000.
Looking at EUR/USD, the pair faced an increase in selling pressure, resulting in a drop below the 1.1600 support zone.
Upcoming Key Economic Events:
- ECB’s De Guindos speech.
- BoE’s Ramsden speech.
