Key Highlights
- GBP/USD declined heavily below the 1.2350 and 1.2250 support levels.
- A key bearish trend line is forming with resistance at 1.2480 on the 4-hour chart.
- EUR/USD extended losses below the 1.0220 support.
- Gold prices climbed above the $2,650 and $2,660 levels.
GBP/USD Technical Analysis
The British Pound remained in a bearish zone below 1.2500 against the US Dollar. GBP/USD started another decline below the 1.2350 and 1.2250 levels.
Looking at the 4-hour chart, the pair settled below the 1.2200 level, the 100 simple moving average (red, 4-hour), and the 200 simple moving average (green, 4-hour). The pair tested the 1.2100 zone and is currently consolidating losses.
On the upside, the pair is facing hurdles near the 1.2180 level. The first major resistance is near the 1.2210 level. The next major resistance is near the 1.2280 level.
A close above the 1.2280 level could set the tone for another increase. In the stated case, the pair could rise toward the 1.2350 resistance. The main hurdle could be a key bearish trend line with resistance at 1.2480 on the same chart.
On the downside, immediate support sits near the 1.2080 level. The next key support sits near the 1.2050 level. Any more losses could send the pair toward the 1.2000 level.
Looking at EUR/USD, the pair started another decline and the bears were able to push the pair below the 1.0220 support.
Upcoming Economic Events:
- Fed’s Schmid speech.
