Key Highlights
- GBP/USD started a fresh decline below the 1.3120 support.
- A connecting bearish trend line is forming with resistance at 1.3025 on the 4-hour chart.
- Gold prices rallied to a new all-time high above $2,740.
- EUR/USD declined further and traded below 1.0820.
GBP/USD Technical Analysis
The British Pound started a fresh decline below the 1.3120 level against the US Dollar. GBP/USD traded below 1.3050 to move into a bearish zone.
Looking at the 4-hour chart, the pair settled below the 1.3050 pivot level, the 100 simple moving average (red, 4-hour), and the 200 simple moving average (green, 4-hour). The pair even tested the 1.2950 level and currently consolidating losses.
On the upside, the bears might be active near the 1.2985 level. The first key resistance is near the 1.3000 handle. There is also a connecting bearish trend line forming with resistance at 1.3025 on the same chart.
A close above the 1.3025 level could set the tone for another increase. The next major resistance could be 1.3050, above which the price could accelerate higher toward the 1.3120 level.
On the downside, immediate support sits near the 1.2950 level. The next key support sits near the 1.2840 level. Any more losses could send the pair toward the 1.2750 level.
Looking at Gold, the bulls remained in action and were able to push the price to a new all-time high above $2,740.
Upcoming Economic Events:
- Fed’s Beige Book.
- BoC Interest Rate Decision – Forecast 3.75%, versus 4.25% previous.
