Key Highlights
- GBP/USD is struggling to clear the 1.3350 and 1.3380 resistance levels.
- A key bearish trend line is forming with resistance near 1.3355 on the 4-hours chart.
- EUR/USD failed to recover further above the 1.1320 resistance.
- Crude oil price found support and recovered above $70.00.
GBP/USD Technical Analysis
The British Pound started a major decline below 1.3500 against the US Dollar. GBP/USD moved further into a bearish zone below 1.3350.
Looking at the 4-hours chart, the pair even extended decline below 1.3300. However, it was stable above 1.3250. There was a close below the 100 simple moving average (red, 4-hours) and the 200 simple moving average (green, 4-hours).
On the upside, the pair is facing hurdles near 1.3350. There is also a key bearish trend line forming with resistance near 1.3355 on the same chart.
The next major resistance is near 1.3420 and the 100 simple moving average (red, 4-hours), above which the pair could accelerate higher in the coming sessions.
If not, there could be more losses below the 1.3270 and 1.3250 support levels. In the stated case, the pair may possibly decline towards the 1.3150 level.
Looking at EUR/USD, the pair tried to clear the 1.1320 resistance but failed. Besides, gold price is showing a few bearish signs below the $1,800 level.
Economic Releases
- Euro Zone CPI for Nov 2021 (YoY, Preliminary) – Forecast +3.7%, versus +4.1% previous.
- Euro Zone Core CPI for Nov 2021 (YoY, Preliminary) – Forecast +1.9%, versus +2.0% previous.
- US S&P/Case-Shiller Home Price Indices for Sep 2021 (YoY) – Forecast +20%, versus +19.7% previous.
