Key Highlights
- GBP/USD settled below the 1.3120 pivot level.
- A key bearish trend line is forming with resistance near 1.3075 on the 4-hours chart.
- EUR/USD is facing an uphill task near 1.0950.
- The US CPI could increase 8.5% in March 2022 (YoY), up from +7.9%.
GBP/USD Technical Analysis
The British Pound started a fresh decline from well above the 1.3200 level against the US Dollar. GBP/USD declined below the 1.3120 support to move into a bearish zone.
Looking at the 4-hours chart, the pair even traded below the 1.3050 level, the 200 simple moving average (green, 4-hours), and the 100 simple moving average (red, 4-hours).
The pair traded as low as 1.2981 and is currently consolidating losses. An immediate resistance on the upside is near the 1.3050 level.
The first major resistance is near the 1.3075 level. There is also a key bearish trend line forming with resistance near 1.3075 on the same chart. The next major resistance is near the 1.3120 level and the 100 simple moving average (red, 4-hours).
Any more gains might send the pair towards the 1.3200 level in the coming sessions. On the downside, an immediate support is near the 1.2980 level. The next major support is near the 1.2955 level. A downside break below the 1.2955 support level might send the pair towards the 1.2840 level.
Looking at EUR/USD, the pair is struggling below the 1.0950 resistance zone. If there is no recovery wave, the pair could extend decline below 1.0850.
Economic Releases
- UK Claimant Count Change for March 2022 – Forecast -30.0K, versus -48.1K previous.
- UK ILO Unemployment Rate Feb 2022 (3M) – Forecast 3.9%, versus 3.9% previous.
- German Consumer Price Index for March 2022 (YoY) – Forecast +7.3%, versus +7.3% previous.
- German Consumer Price Index for March 2022 (MoM) – Forecast +2.5%, versus +2.5% previous.
- US Consumer Price Index for March 2022 (MoM) – Forecast 1.2%, versus +0.8% previous.
- US Consumer Price Index for March 2022 (YoY) – Forecast +8.5%, versus +7.9% previous.
- US CPI for Ex Food & Energy for March 2022 (YoY) – Forecast +6.6%, versus +6.4% previous.
