Key Highlights
- GBP/USD failed to start another increase above the 1.2800 resistance zone.
- A major bearish trend line is forming with resistance at 1.2600 on the 4-hour chart.
- EUR/USD is at risk of more losses below the 1.0340 support.
- Crude Oil prices gained bullish momentum and climbed above $71.50.
GBP/USD Technical Analysis
The British Pound started another decline from the 1.2800 resistance zone against the US Dollar. GBP/USD declined below 1.2720 and 1.2650 to enter a bearish zone.
Looking at the 4-hour chart, the pair settled below the 1.2650 level, the 100 simple moving average (red, 4-hour), and the 200 simple moving average (green, 4-hour). The pair even retested the 1.2480 support zone before it started a consolidation phase.
On the upside, the pair is facing hurdles near the 1.2570 level. The first major resistance is near the 1.2600 level. There is also a major bearish trend line forming with resistance at 1.2600 on the same chart.
The next major resistance is near the 1.2630 level and the 100 simple moving average (red, 4-hour). A close above the 1.2630 level could set the tone for another increase. In the stated case, the pair could rise toward the 1.2750 resistance.
On the downside, immediate support sits near the 1.2475 level. The next key support sits near the 1.2420 level. Any more losses could send the pair toward the 1.2350 level.
Looking at EUR/USD, the pair is consolidating losses below 1.0420 and might continue to move down in the near term.
Upcoming Economic Events:
- Euro Zone Manufacturing PMI for Dec 2024 – Forecast 45.2, versus 45.2 previous.
- UK Manufacturing PMI for Dec 2024 – Forecast 47.3, versus 47.3 previous.
- US Manufacturing PMI for Dec 2024 – Forecast 48.3, versus 48.3 previous.
