Key Highlights
The British Pound declined further and broke the 1.3350 support against the US Dollar.
- There are two bearish trend lines in place with resistance at 1.3330 and 1.3375 on the 4-hours chart of GBP/USD.
- The pair may perhaps extend the current decline towards the 1.3250 level in the near term.
- Today in the US, the S&P/Case-Shiller Home Price Indices for March 2018 will be released, which is forecasted to increase 6.4% (YoY).
GBPUSD Technical Analysis
The British Pound failed to gain traction and declined further from the 1.3420 resistance against the US Dollar. The GBP/USD pair declined and broke the 1.3350 support to move further in the bearish zone.
Looking at the 4-hours chart, there is a clear downtrend in place from well above 1.3450. An intermediate swing high at 1.3420 acted as a major hurdle and prevented gains. As a result, the pair fell sharply to a new monthly low below 1.3300.
On the downside, the pair could test the 1.236 Fib extension level of the last wave from the 1.3305 low to 1.3421 high at 1.3277. Below this, the pair could even break the 1.3250 level in the near term.
On the upside, there are two bearish trend lines in place with resistance at 1.3330 and 1.3375 on the 4-hours chart of GBP/USD. A proper close above 1.3375 and 1.3400 is required for buyers to take control.
An intermediate resistance sits near 1.3390, which is also a pivot level. Other major pairs such as EUR/USD also declined and traded to new monthly lows below 1.1650.
Overall, it seems like the US Dollar buyers are in control and EUR/USD and GBP/USD could extend slides in the near term.
Economic Releases to Watch Today
- S&P/Case-Shiller Home Price Indices for March 2018 (YoY) – Forecast +6.4%, versus +6.8% previous.
- Dallas Fed Manufacturing Business Index for May 2018 – Forecast 23.3, versus 21.8 previous.
