Key Highlights
- GBP/USD is consolidating above the 1.2620 support zone.
- A major bearish trend line is forming with resistance at 1.2740 on the 4-hour chart.
- Gold prices could decline if it settles below the $2,620 support zone.
- The US GDP could grow 2.8% in Q3 2024.
GBP/USD Technical Analysis
The British Pound struggled above 1.2750 against the US Dollar. GBP/USD started a fresh decline and traded below the 1.2680 support zone.
Looking at the 4-hour chart, the pair remained stable above the 1.2600 zone. A low was formed at 1.2608 and the pair is now attempting a fresh increase. It surpassed the 1.2650 and 1.2660 levels.
There was a move above the 50% Fib retracement level of the downward move from the 1.2787 swing high to the 1.2608 low, and the 100 simple moving average (red, 4-hour). However, the bears are active below the 1.2750 level and the 200 simple moving average (green, 4-hour).
On the upside, the pair could face resistance near the 1.2740 level. There is also a major bearish trend line forming with resistance at 1.2740 on the same chart.
The trend line is close to the 61.8% Fib retracement level of the downward move from the 1.2787 swing high to the 1.2608 low. The next major resistance is near the 1.2780 level. A close above the 1.2780 level could set the tone for another increase.
The next major resistance could be the 1.2850 level, above which the price could climb higher toward the 1.2920 resistance. On the downside, immediate support sits near the 1.2660 level.
The next key support sits near the 1.2620 level. Any more losses could send the pair toward the 1.2550 level.
Looking at Gold, the price started a fresh decline and there is now a risk of a downside break below the $2,620 support zone.
Upcoming Economic Events:
- US Initial Jobless Claims – Forecast 230K, versus 242K previous.
- US Gross Domestic Product for Q3 2024 – Forecast 2.8% versus previous 2.8%.
