Key Highlights
- GBP/USD followed a bearish path below 1.3280.
- Gold price extended gains and tested the $2,000 resistance.
- Crude oil price surged to $130 before correcting lower.
- AUD/USD and NZD/USD performed better than GBP/USD and EUR/USD.
GBP/USD Technical Analysis
The British Pound started a major decline after it failed to clear 1.3420 against the US Dollar. GBP/USD traded below the 1.3320 support to enter a bearish zone.
Looking at the 4-hours chart, the pair settled below the 1.3250 level, the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours).
There was a clear move below the 1.3200 support zone. A low was formed near 1.3100 and the pair is now consolidating losses. If there is a recovery wave, the pair could face resistance near the 1.3200 level.
The next major resistance is near the 1.3280 level. A successful close above the 1.3250 resistance might start a steady increase. In the stated case, the pair could rise towards the 1.3400 resistance zone in the near term.
If not, the pair might continue to move down below the 1.3100 support zone. The next key support is near 1.3080 level, below which there is a risk of a move towards the 1.3000 handle.
Looking at EUR/USD, the pair extended decline below the 1.0850 support level. Conversely, gold price rallied to $2,000 and crude oil price spiked to $130 before correcting lower.
Economic Releases
- UK BR Like-for-Like Retail Sales for Feb 2022 (YoY) – Forecast +15.2%, versus +8.1% previous.
- Euro Zone Gross Domestic Product for Q4 2021 (QoQ) – Forecast 0.3%, versus 0.3% previous.
- Euro Zone Gross Domestic Product for Q4 2021 (YoY) – Forecast 4.6%, versus 4.6% previous.
