Key Highlights
- GBP/USD is attempting a recovery wave from the 1.2530 zone.
- A key bearish trend line is forming with resistance near 1.2630 on the 4-hour chart.
- Gold is facing resistance near the $2,020 zone.
- Bitcoin price is still consolidating gains above the $50,500 support.
GBP/USD Technical Analysis
The British Pound extended its decline below the 1.2620 level against the US Dollar. EUR/USD even spiked below 1.2550 before it found support.
Looking at the 4-hour chart, the pair traded as low as 1.2535 and is currently attempting a recovery wave. There was a move above the 1.2580 resistance zone. The pair broke the 50% Fib retracement level of the downward move from the 1.2690 swing high to the 1.2535 low.
GBP/USD is now facing strong resistance near the 1.2620 zone. There is also a key bearish trend line forming with resistance near 1.2620 on the same chart.
The trend line is close to the 61.8% Fib retracement level of the downward move from the 1.2690 swing high to the 1.2535 low. A close above the 1.2620 zone could open the doors for more upsides. The next stop for the bulls might be 1.2650. Any more gains might send GBP/USD toward 1.2720.
Immediate support is near the 1.2575 level. The first major support sits near the 1.2535 level. The next major support sits at 1.2515, below which the pair might gain bearish momentum. In the stated case, the pair could even visit the 1.2440 support level.
Looking at Bitcoin, the price is still consolidating gains above the $50,000 level and might aim for more upsides.
Economic Releases
- Canadian Consumer Price Index for Jan 2024 (MoM) – Forecast +0.4%, versus -0.3% previous.
- Canadian Consumer Price Index for Jan 2024 (YoY) – Forecast +3.2%, versus +3.4% previous.
