Key Highlights
- GBP/USD started a consolidation phase near the 1.2950 zone.
- A key bearish trend line is forming with resistance at 1.2990 on the 4-hour chart.
- Bitcoin climbed further above the $71,500 resistance.
- Gold traded to a new all-time high above $2,765.
GBP/USD Technical Analysis
The British Pound remained in a bearish zone below 1.3120 against the US Dollar. GBP/USD even traded below 1.2950 before the bulls appeared.
Looking at the 4-hour chart, the pair settled below the 1.3050 level, the 100 simple moving average (red, 4-hour), and the 200 simple moving average (green, 4-hour). It traded as low as 1.2907 and recently started a consolidation phase.
On the downside, immediate support sits near the 1.2920 level. The next key support sits near the 1.2900 level. Any more losses could send the pair toward the 1.2840 level.
On the upside, the pair could face resistance near the 1.2990 level. There is also a key bearish trend line forming with resistance at 1.2990 on the same chart. The first key resistance is near the 1.3035 level and the 50% Fib retracement level of the downward move from the 1.3070 swing high to the 1.2907 low.
A close above the 1.3035 level could set the tone for another increase. The next major resistance could be 1.3080, above which the price could accelerate higher toward the 1.3120 resistance.
Looking at Gold, the price started a fresh increase and the bulls were able to push prices to a new all-time high above $2,765.
Upcoming Economic Events:
- US ADP Employment Change for Oct 2024 – Forecast 115K, versus 143K previous.
- US Gross Domestic Product for Q3 2024 (Preliminary) – Forecast 3% versus previous 3%.
