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GBP/USD Drops Further As Traders Brace For Crucial Fed Rate Signal

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Aayush Jindal

Key Highlights

  • GBP/USD started a fresh decline below 1.3350 and 1.3320.
  • A major bearish trend line is forming with resistance at 1.3355 on the 4-hour chart.
  • Gold price declined below $4,020 and $4,000.
  • Bitcoin is trimming gains below the $114,000 resistance.

GBP/USD Technical Analysis

The British Pound failed to stay above 1.3400 against the US Dollar. GBP/USD started a fresh decline and traded below the key support at 1.3350.

Looking at the 4-hour chart, the pair settled below 1.3350, the 100 simple moving average (red, 4-hour), and the 200 simple moving average (green, 4-hour). The decline gained pace below 1.3320 and the pair even spiked below 1.3280.

On the downside, the pair might find support at 1.3240. The main support might be 1.3200. A close below the 1.3200 zone could start a major pullback toward 1.3050. Any more losses might open the doors for a test of 1.3000.

On the upside, the pair faces resistance near the 1.3300 level. The next hurdle could be near 1.3330. There is also a major bearish trend line forming with resistance at 1.3355 on the same chart.

A close above 1.3355 resistance might push the pair to 1.3400. Any more gains could set the pace for a steady increase toward 1.3450 and 1.3465.

Looking at EUR/USD, the pair is consolidating, but the bulls need to push the pair above 1.1700 to start a steady increase.

Upcoming Key Economic Events:

  • Fed Interest Rate Decision - Forecast 4%, versus 4.25% previous.
  • BoC Interest Rate Decision - Forecast 2.25%, versus 2.5% previous.
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