Key Highlights
- GBP/USD is accelerating lower below the 1.2120 level.
- A major bearish trend line is forming with resistance near 1.2170 on the 4-hour chart.
- EUR/USD is also moving lower below the 1.0500 level.
- The Swiss CPI could increase from 1.6% to 1.8% in Sep 2023 (YoY).
GBP/USD Technical Analysis
The British Pound remained in a bearish zone below 1.2200 against the US Dollar. GBP/USD dived below the 1.2150 zone to enter further into a bearish zone.
Looking at the 4-hour chart, the pair settled below the 1.2140 level, the 100 simple moving average (red, 4 hours), and the 200 simple moving average (green, 4 hours).
The decline gained pace below the 1.2120 level. A low is formed near 1.2067 and the pair is still showing signs of more downsides. Immediate support is near the 1.2050 level. The next key support is seen near the 1.2020 level, below which it could test 1.2000.
Any more losses might send the pair toward the 1.1880 level. If there is a recovery wave, the pair could face resistance near the 1.2120 level.
The first major resistance is near 1.2150. There is also a major bearish trend line forming with resistance near 1.2170 on the same chart. The trend line is near the 50% Fib retracement level of the downward move from the 1.2271 swing high to the 1.2067 low.
A close above 1.2170 could start a steady increase. In the stated case, GBP/USD might rise and recover toward the 1.2250 resistance zone.
Looking at EUR/USD, the pair extended its decline toward the 1.0450 level and is currently at risk of more downsides.
Economic Releases
- Swiss CPI for Sep 2023 (YoY) – Forecast +1.8%, versus +1.6% previous.
