Key Highlights
- GBP/USD extended its decline below the 1.2650 support zone.
- A major bearish trend line is forming with resistance near 1.2720 on the 4-hour chart.
- EUR/USD could struggle near the 1.0850 and 1.0860 resistance levels.
- Crude oil prices might attempt a fresh increase toward the $85 level.
GBP/USD Technical Analysis
The British Pound failed to continue higher above the 1.2920 resistance against the US Dollar. GBP/USD traded below the 1.2720 support to enter a bearish zone.
Looking at the 4-hour chart, the pair even settled below the 1,2680 level, the 100 simple moving average (red, 4-hour), and the 200 simple moving average (green, 4-hour). Finally, the pair traded as low as 1.2575 and the pair is now consolidating losses.
On the upside, the pair could face resistance near the 1.2660 level. The first major resistance is now forming near 1.2680. The main resistance is now forming near 1.2700.
There is also a major bearish trend line forming with resistance near 1.2720 on the same chart. A close above the 1.2720 zone could open the doors for more upsides. The next stop for the bulls might be 1.2800.
If not, the pair might continue to decline. Immediate support is near the 1.2600 level. The next major support is at 1.2575. If there is a downside break below the 1.2572 support, the pair could decline toward the 1.2520 support. Any more losses might send the pair toward the 1.2450 level in the near term.
Looking at Oil, the bulls are active above the $80 pivot level and they might soon aim for more upsides toward the $85 level.
Economic Releases
- US Durable Goods Orders for Feb 2024 – Forecast +1.3%, versus -6.2% previous.
