Key Highlights
- GBP/USD started a fresh decline from the 1.3300 region.
- It traded below a key bullish trend line with support near 1.3185 on the 4-hours chart.
- EUR/USD is struggling below the 1.1050 resistance zone.
- USD/JPY rallied above 124.00 before correcting gains.
GBP/USD Technical Analysis
The British Pound struggled to surpass the 1.3300 resistance zone against the US Dollar. GBP/USD started a fresh decline below the 1.3250 level.
Looking at the 4-hours chart, the pair declined below the 1.3200 support zone and settled below the 200 simple moving average (green, 4-hours). There was a clear move below the 50% Fib retracement level of the upward move from the 1.3000 swing low to 1.3298 high.
It is now trading below the 1.3150 level and the 100 simple moving average (red, 4-hours). An initial support is near the 1.3070 level or the 76.4% Fib retracement level of the upward move from the 1.3000 swing low to 1.3298 high.
The main support is near the 1.3000 level. A downside break below the 1.3000 level might call for a sharp decline. The next major support sits near the 1.2920 level, below which the pair could revisit 1.2800.
On the upside, an immediate resistance is near the 1.3120 level. The main resistance sits near the 1.3150 level and the 100 simple moving average (red, 4-hours). A clear move above the 1.3150 zone could set the pace for a move towards 1.3300.
Looking at EUR/USD, the pair is showing bearish signs below the 1.1050 level and remains at a risk of more downsides.
Economic Releases
- US Housing Price Index for Jan 2022 (MoM) – Forecast +1.4%, versus +1.2% previous.
