Key Highlights
- GBP/USD is struggling to stay above the key 1.2620 support zone.
- It broke a major bullish trend line with support at 1.2685 on the 4-hour chart.
- EUR/USD is showing a few bearish signs below 1.0900.
- Gold prices started a downside correction from the $2,060 resistance level.
GBP/USD Technical Analysis
The British Pound started a fresh decline from the 1.2785 level against the US Dollar. GBP/USD declined below the 1.2700 level to move into a bearish zone.
Looking at the 4-hour chart, the pair settled below the 1.2680 level, the 100 simple moving average (red, 4 hours), and the 200 simple moving average (green, 4 hours). There was a spike below the 1.2640 level.
The pair traded as low as 1.2619 and is currently consolidating losses. On the upside, immediate resistance is near the 1.2680 level and the 200 simple moving average (green, 4 hours). The next key resistance is near the 1.2700 zone.
The 100 simple moving average (red, 4 hours) is also near the 1.2700 zone to act as a barrier. A close above the 1.2700 zone could open the doors for more upsides. The next stop for the bulls might be 1.2785.
If there is a fresh decline, the pair could clear the 1.2600 support. The next major support sits at 1.2540. A downside break below the 1.2540 zone could spark a sustained decline. The next major support is 1.2420, below which the pair might decline and test 1.2350.
Looking at EUR/USD, the pair is struggling and it might slide below the 1.0850 support zone in the coming sessions.
Economic Releases
- UK Consumer Price Index for Dec 2023 (YoY) – Forecast +3.8%, versus +3.9% previous.
- UK Core Consumer Price Index for Dec 2023 (YoY) – Forecast +4.9%, versus +5.1% previous.
- US Retail Sales for Dec 2023 (MoM) – Forecast +0.4%, versus +0.3% previous.
