Key Highlights
- GBP/USD is struggling to recover above the 1.3350 resistance.
- A major bearish trend line is forming with resistance near 1.3280 on the 4-hours chart.
- EUR/USD could resume losses if there is a clear break below 1.1250.
- Gold price is showing a few bearish signs below $1,800.
GBP/USD Technical Analysis
The British pound attempted a recovery wave above 1.3350 against the US Dollar. However, GBP/USD struggled to gain pace and started a fresh decline below 1.3300.
Looking at the 4-hours chart, the pair resumed its decline below 1.3300. The pair settled well below 1.3350, the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours).
On the upside, the pair is facing resistance near 1.3270. There is also a major bearish trend line forming with resistance near 1.3280. The trend line is close to the 23.6% Fib retracement level of the downward move from the 1.3513 swing high to 1.3194 low.
The next major resistance is near 1.3350 or the 50% Fib retracement level of the downward move from the 1.3513 swing high to 1.3194 low.
A clear break above the 1.3300 and 1.3350 levels could start a steady increase. If not, there could be more losses below the 1.3200 and 1.3180 support levels. In the stated case, the pair may possibly decline towards the 1.3050 level.
Looking at EUR/USD, the pair is struggling to recover above 1.1350 and it seems like there could be more losses below the 1.1250 support.
Economic Releases
- Euro Zone Gross Domestic Product for Q3 2021 (QoQ) – Forecast 2.2%, versus 2.2% previous.
- Euro Zone Gross Domestic Product for Q3 2021 (YoY) – Forecast 3.7%, versus 3.7% previous.
- German ZEW Business Economic Sentiment Index for Dec 2021 – Forecast 25.3, versus 31.7 previous.
