Key Highlights
- GBP/USD started a fresh decline from 1.3720 and dipped below 1.3600.
- A key bearish trend line is forming with resistance at 1.3550 on the 4-hour chart.
- Bitcoin recovered some losses and climbed above $68,000.
- Gold could aim for a fresh move toward $5,315.
GBP/USD Technical Analysis
The British Pound failed to settle above 1.3700 against the US Dollar. GBP/USD dipped below 1.3620 and 1.3550 to enter a bearish zone.
Looking at the 4-hour chart, the pair settled below 1.3550, the 100 simple moving average (red, 4-hour), and the 200 simple moving average (green, 4-hour) before the bulls appeared near 1.3430. A low was formed at 1.3434, and the pair started a recovery wave.
There was a move above 1.3500, and the 23.6% Fib retracement level of the downward move from the 1.3712 swing high to the 1.3434 low. On the upside, the pair is now facing hurdles near 1.3540.
There is also a key bearish trend line forming with resistance at 1.3550. The next stop for the bulls might be 1.3575 and the 100 simple moving average (red, 4-hour). It is close to the 50% Fib retracement level of the downward move from the 1.3712 swing high to the 1.3434 low.
A close above 1.3575 could open the doors for more gains. In the stated case, the bulls could aim for a move to 1.3600. The main resistance sits near 1.3720.
Immediate support could be 1.3460. The first major area for the bulls might be near 1.3435. The main support sits at 1.3400, below which the pair might gain bearish momentum. In the stated case, it could even revisit 1.3320.
Looking at Gold, the price is again moving higher, and the bulls could soon aim for a move toward the $5,315 resistance.
Upcoming Key Economic Events:
- US Initial Jobless Claims – Forecast 215K, versus 206K previous.
- BoE’s Lombardelli speech.
