Key Highlights
- GBP/USD turned red and dipped below the 1.3500 pivot level.
- A major bearish trend line is forming with resistance at 1.3510 on the 4-hour chart.
- Bitcoin struggled, dipped below $76,500, and might decline further.
- WTI Crude Oil prices jumped above $105 before there was a minor pullback.
GBP/USD Technical Analysis
The British Pound failed to stay above 1.3540 against the US Dollar. GBP/USD declined below 1.3520 and 1.3500 to enter a bearish zone.
Looking at the 4-hour chart, the pair settled well below 1.3500, the 100 simple moving average (red, 4-hour), and the 200 simple moving average (green, 4-hour). The decline was such that the pair even slipped below the 1.618 Fib extension level of the upward move from the 1.3474 swing low to the 1.3568 high.
If the bears remain in action, the pair might even decline toward 1.3350. The first major support could be near 1.3320. A close below 1.3320 might accelerate the decline. In the stated case, the bears could aim for a move to 1.3250.
On the other hand, a recovery wave could face resistance near 1.3420. The next major resistance might be near a bearish trend line at 1.3510. The main hurdle could be near the confluence of the 100 simple moving average (red, 4-hour) and the 200 simple moving average (green, 4-hour) at 1.3535.
A close above 1.3535 could start another steady increase. In the stated case, the bulls could aim for a move to 1.3580.
Looking at WTI Crude Oil prices, the price extended gains toward $107 before the bears appeared and sparked a downside correction.
Upcoming Key Economic Events:
- US Initial Jobless Claims – Forecast 208K, versus 206K previous.
- BoE Interest Rate Decision – Forecast 3.75%, versus 3.75% previous.
