Key Highlights
- GBP/USD traded below the 1.4000 support and it even declined to 1.3780.
- A major bearish trend line is forming with resistance near 1.3900 on the 4-hours chart.
- EUR/USD accelerated losses below the 1.1900 support zone.
- Gold price extended its decline below the $1,700 support zone.
GBP/USD Technical Analysis
After forming a short-term top near 1.4250, the British Pound started a fresh decline. GBP/USD broke the key 1.4000 support zone to move into a bearish zone.
Looking at the 4-hours chart, the pair even settled below the 1.4000 level and the 100 simple moving average (red, 4-hours). There was also a break below the 1.3800 support and the 200 simple moving average (green, 4-hours).
A low was formed near 1.3778 before it started consolidating losses. On the upside, the pair is facing hurdles near the 1.3880 and 1.3900 levels.
There is also a major bearish trend line forming with resistance near 1.3900 on the same chart. A clear break above trend line and then a follow up move above 1.4000 is must for a fresh increase.
If not, there are chances of more losses below the 1.3770 and 1.3750 levels. The next major support is near the 1.3710 level.
Looking at EUR/USD, the pair failed to correct higher and it extended its decline below the 1.1900 support. Similarly, gold price extended its decline below $1,700.
Economic Releases
- Euro Zone Gross Domestic Product Q4 2020 (QoQ) – Forecast -0.6%, versus -0.6% previous.
- Euro Zone Gross Domestic Product Q4 2020 (YoY) – Forecast -5%, versus -5% previous.
