Key Highlights
- GBP/USD gained bearish momentum below the 1.2640 support zone.
- A major bearish trend line is forming with resistance at 1.2670 on the 4-hour chart.
- Gold prices rallied further above the $2,260 resistance.
- The US ISM Services Index could increase from 52.6 to 52.7 in March 2024.
GBP/USD Technical Analysis
The British Pound started another decline below the 1.2740 zone against the US Dollar. GBP/USD traded below the 1.2650 and 1.2620 levels to move into a bearish zone.
Looking at the 4-hour chart, the pair even settled below the 1.2600 level, the 100 simple moving average (red, 4-hour), and the 200 simple moving average (green, 4-hour). Finally, the pair traded below the 1.2550 support.
A low was formed near 1.2539 and the pair is now consolidating losses. On the upside, the pair could face resistance near the 1.2580 level. The first major resistance is now forming near 1.2600 or the 23.6% Fib retracement level of the downward move from the 1.2803 swing high to the 1.2539 low.
The first major resistance is forming near the 1.2640 level. The main resistance is now forming near 1.2670. There is also a major bearish trend line forming with resistance at 1.2670 on the same chart.
A close above the 1.2670 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 1.2530 level.
The next major support is at 1.2500. If there is a downside break below the 1.2500 support, the pair could decline toward the 1.2440 support. Any more losses might send the pair toward the 1.2350 level in the near term.
Looking at Gold, the bulls remain in control as they were able to push prices above the $2,260 level and there could be a move toward $2,300.
Economic Releases
- US ISM Services Index for March 2024 – Forecast 52.7, versus 52.6 previous.
- Federal Reserve Chair Jerome Powell’s speech.
