Key Highlights
GBP/USD started a major decline below the 1.2980 support.
It is down over 250 pips and remains at a risk of more losses.
EUR/USD extended decline below the 1.0750 support zone.
The US Durable Goods Orders could increase 1% in March 2022.
GBP/USD Technical Analysis
The British Pound failed to stay above 1.3000 against the US Dollar. GBP/USD settled below the 1.2980 support zone to move into a bearish zone.
Looking at the 4-hours chart, the pair declined heavily below 1.2900, the 200 simple moving average (green, 4-hours), and the 100 simple moving average (red, 4-hours).
The pair even broke the 1.2800 support zone and traded close to 1.2700. A low is formed near 1.2697 and it is now consolidating losses. The next major support is near the 1.2650 level. Any more losses may perhaps open the doors for a move towards the 1.2580 level.
On the upside, the pair might face resistance near the 1.2780 level. The next major resistance is seen near the 1.2850 level, above which the pair could start a steady increase. In the stated case, GBP/USD may possibly face a strong selling interest near the last breakdown zone at 1.2980.
There is also a key barrier forming near the 1.3050 level, the 100 simple moving average (red, 4-hours), and a connecting bearish trend line on the same chart.
Looking at EUR/USD, the pair failed to recover losses and extended its decline below the key 1.0750 support zone.
Economic Releases
- US Durable Goods Orders for March 2022 – Forecast +1% versus -2.1% previous.
- US Durable Goods Orders ex Defense for March 2022 – Forecast 0% versus -2.6% previous.
- US Durable Goods Orders ex Transportation for March 2022 – Forecast +0.6% versus -0.6% previous.
