Key Highlights
- GBP/USD is consolidating losses above the 1.3200 support.
- A crucial bearish trend line is forming with resistance near 1.3240 on the 4-hours chart.
- EUR/USD is stuck below the 1.1400 resistance zone.
- Gold price could attempt a fresh increase above $1,800.
GBP/USD Technical Analysis
The British Pound remained in a bearish zone below 1.3300 against the US Dollar. GBP/USD is now consolidating losses above the 1.3200 support zone.
Looking at the 4-hours chart, the pair settled below the 1.3300 resistance zone. There was also a break below the 1.3200 level, and a close below the 100 simple moving average (red, 4-hours) and the 200 simple moving average (green, 4-hours).
A low was formed near 1.3160 and the pair is now consolidating losses. There was a minor recovery wave above the 23.6% Fib retracement level of the downward move from the 1.3513 swing high to 1.3160 low.
On the upside, the bulls are now facing resistance near the 1.3240 level. There is also a crucial bearish trend line forming with resistance near 1.3240 on the same chart.
The next key resistance is near the 50% Fib retracement level of the downward move from the 1.1608 swing high to 1.1186 low at 1.3335. A clear break above the 1.3300 and 1.3335 resistance levels could open the doors for a steady upward move.
If not, there could be a fresh decline below the 1.3200 support. The next major support is near the 1.3150 level, below which the pair could decline heavily.
Looking at EUR/USD, the pair is consolidating losses and it could gain pace if there is a clear move above the 1.1400 resistance.
Economic Releases
- UK Claimant Count Change for Nov 2021 – Forecast -13.0K, versus -14.9K previous.
- UK ILO Unemployment Rate Feb 2021 (3M) – Forecast 5.2%, versus 5.1% previous.
