Key Highlights
- GBP/USD is struggling to recover above the 1.2180 resistance zone.
- A major bearish trend line is forming with resistance near 1.2235 on the 4-hour chart.
- Gold price is struggling to gain pace above the $2,000 resistance.
- Oil prices are showing bearish signs and might decline below $83.50.
GBP/USD Technical Analysis
The British Pound started a fresh decline from the 1.2290 zone against the US Dollar. GBP/USD traded below the 1.2200 support to enter a bearish zone.
Looking at the 4-hour chart, the pair settled well below the 1.2200 level, the 100 simple moving average (red, 4 hours), and the 200 simple moving average (green, 4 hours).
Finally, the bulls appeared near the 1.2070 zone. A low was formed near 1.2069 before the pair started a consolidation phase. It corrected above the 23.6% Fib retracement level of the downward move from the 1.2288 swing high to the 1.2069 low.
On the upside, the pair might face strong resistance near the 1.2180 level. It is near the 50% Fib retracement level of the downward move from the 1.2288 swing high to the 1.2069 low and the 100 simple moving average (red, 4 hours).
The next key resistance is near 1.2235 and the trend line, above which the pair could rise toward the 1.2285 level. If there is a clear move above 1.2285, the pair could rise toward the 1.2350 resistance.
If there is a fresh decline, the pair might find bids near 1.2070. The next key support is seen near 1.2045, below which it could test 1.2000. Any more losses might send the pair toward the 1.1920 level.
Looking at oil, the bulls are still struggling and there seems to be a possibility of more losses below the $83.50 level.
Economic Releases
- Euro Zone Gross Domestic Product for Q3 2023 (Prelim) (QoQ) – Forecast 0%, versus 0.1% previous.
