Key Highlights
- GBP/USD declined further and traded below 1.2420.
- A major bearish trend line is forming with resistance near 1.2440 on the 4-hour chart.
- Bitcoin price spiked and broke the $27,000 resistance.
- Crude oil prices are unstoppable as the bulls aim for $92.50.
GBP/USD Technical Analysis
The British Pound remained in a bearish zone below 1.2500 against the US Dollar. GBP/USD started a fresh decline and traded below the 1.2480 support.
Looking at the 4-hour chart, the pair settled below the 1.2450 support, the 100 simple moving average (red, 4 hours), and the 200 simple moving average (green, 4 hours).
The bears even pushed it below 1.2420 and the pair traded to a new multi-week low. It is now consolidating losses and trading well below the 23.6% Fib retracement level of the downward move from the 1.2746 swing high to the 1.2370 low.
On the upside, the pair might face resistance near 1.2420. The next major resistance is near the 1.2450 zone. There is also a major bearish trend line forming with resistance near 1.2440 on the same chart.
A close above 1.2450 could start a decent recovery wave. In the stated case, the pair could rise toward the 1.2500 level. Any more gains might send GBP/USD toward the 50% Fib retracement level of the downward move from the 1.2746 swing high to the 1.2370 low at 1.2550.
On the downside, immediate support is near 1.2370. The next key support is seen near the 1.2350 level. If there is a move below 1.2350, the pair could dive toward 1.2265. Any more losses might send the pair toward the 1.2220 level.
Looking at Crude oil prices, the bulls seem to be in full control, and they seem to be aiming for a move toward the $92.50 level.
Economic Releases
- US Housing Starts for August 2023 (MoM) – Forecast 1.440M, versus 1.452M previous.
- US Building Permits for August 2023 (MoM) – Forecast 1.445M, versus 1.443M previous.
- Canadian Consumer Price Index for August 2023 (MoM) – Forecast +0.2%, versus +0.6% previous.
- Canadian Consumer Price Index for August 2023 (YoY) – Forecast +3.8%, versus +3.3% previous.
