Key Highlights
- GBP/USD found support near 1.3400 and recovered some losses.
- It cleared a key bearish trend line with resistance at 1.3430 on the 4-hour chart.
- EUR/USD is facing heavy resistance near 1.1700.
- Gold remains elevated and might rise further above $4,620.
GBP/USD Technical Analysis
The British Pound dipped below 1.3450 and tested 1.3400 against the US Dollar. GBP/USD traded as low as 1.3391 and recently started a fresh increase.
Looking at the 4-hour chart, the pair cleared a key bearish trend line with resistance at 1.3430. There was a move above the 50% Fib retracement level of the downward move from the 1.3567 swing high to the 1.3391 low.
The pair remained well above the 200 simple moving average (green, 4-hour) and surpassed the 100 simple moving average (red, 4-hour). Immediate resistance sits near 1.3500 or the 61.8% Fib retracement.
The first key hurdle is seen near 1.3525. A close above 1.3525 could open the doors for a move toward 1.3565. Any more gains could set the pace for a steady increase toward 1.3700.
If there is no move above 1.3500, there could be a bearish reaction. On the downside, immediate support is near the 1.3450 level. The first major area for the bulls might be near 1.3400. A close below 1.3400 might spark heavy bearish moves. The next support could be 1.3380, below which the bears might aim for a move toward 1.3320.
Looking at Gold, the bulls remain in action and might soon aim for more gains above $4,640 and $4,650 in the near term.
Upcoming Key Economic Events:
- US Retail Sales for Nov 2025 (MoM) – Forecast +0.4%, versus 0% previous.
- Fed’s Miran speech.
- BoE’s Ramsden speech.
