Key Highlights
- GBP/USD started a fresh decline below 1.3350 and 1.3320.
- A major bearish trend line is forming with resistance at 1.3355 on the 4-hour chart.
- Gold price declined below $4,020 and $4,000.
- Bitcoin is trimming gains below the $114,000 resistance.
GBP/USD Technical Analysis
The British Pound failed to stay above 1.3400 against the US Dollar. GBP/USD started a fresh decline and traded below the key support at 1.3350.
Looking at the 4-hour chart, the pair settled below 1.3350, the 100 simple moving average (red, 4-hour), and the 200 simple moving average (green, 4-hour). The decline gained pace below 1.3320 and the pair even spiked below 1.3280.
On the downside, the pair might find support at 1.3240. The main support might be 1.3200. A close below the 1.3200 zone could start a major pullback toward 1.3050. Any more losses might open the doors for a test of 1.3000.
On the upside, the pair faces resistance near the 1.3300 level. The next hurdle could be near 1.3330. There is also a major bearish trend line forming with resistance at 1.3355 on the same chart.
A close above 1.3355 resistance might push the pair to 1.3400. Any more gains could set the pace for a steady increase toward 1.3450 and 1.3465.
Looking at EUR/USD, the pair is consolidating, but the bulls need to push the pair above 1.1700 to start a steady increase.
Upcoming Key Economic Events:
- Fed Interest Rate Decision – Forecast 4%, versus 4.25% previous.
- BoC Interest Rate Decision – Forecast 2.25%, versus 2.5% previous.
