Key Highlights
- GBP/USD started a downside correction below the 1.3520 support.
- It traded below a key bullish trend line with support at 1.3450 on the 4-hour chart.
- EUR/USD trimmed gains and traded below the 1.1320 level.
- The US Gross Domestic Product could contract by 0.3% in Q1 2025 (Preliminary).
GBP/USD Technical Analysis
The British Pound failed to surpass 1.3600 against the US Dollar. GBP/USD started a downside correction below the 1.3550 and 1.3540 levels.
Looking at the 4-hour chart, the pair traded below a key bullish trend line with support at 1.3450. There was also a move below the 23.6% Fib retracement level of the upward move from the 1.3139 swing low to the 1.3593 high.
However, the pair is still above the 100 simple moving average (red, 4-hour) and the 200 simple moving average (green, 4-hour). The pair is consolidating below the 1.3500 level.
On the upside, the pair could face resistance near the 1.3500 level. The next key resistance sits near the 1.3540 level. The first major resistance sits at 1.3550. A close above the 1.3550 level could set the pace for another increase.
In the stated case, the pair could even clear the 1.3600 resistance. The next major stop for the bulls could be near the 1.3680 resistance.
On the downside, immediate support sits near the 1.3420 level. The next key support sits near 1.3365. It is near the 50% Fib retracement level of the upward move from the 1.3139 swing low to the 1.3593 high.
Any more losses could send the pair toward the 1.3250 pivot level in the near term. The main support could be near 1.3120.
Looking at EUR/USD, the pair failed to continue higher and recently trimmed gains below the 1.1320 level.
Upcoming Economic Events:
- US Initial Jobless Claims – Forecast 230K, versus 227K previous.
- US Gross Domestic Product for Q1 2025 (Preliminary) – Forecast -0.3% versus previous -0.3%.
