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Aayush Jindal

Key Highlights

  • GBP/USD declined further below 1.3350 and tested 1.3300.
  • A major bearish trend line is forming with resistance at 1.3385 on the 4-hour chart.
  • EUR/USD extended losses below 1.1600 and started a consolidation phase.
  • Gold rallied to a fresh all-time high above $4,175 before it faced resistance.

GBP/USD Technical Analysis

The British Pound started a major decline below 1.3400 against the US Dollar. GBP/USD dropped below the 1.3350 and 1.3300 levels to enter a bearish zone.

Looking at the 4-hour chart, the pair settled below the 100 simple moving average (red, 4-hour) and the 200 simple moving average (green, 4-hour). The pair even tested the 1.3250 zone and recently started a consolidation phase.

On the upside, the pair faces resistance near the 1.3350 level. It is close to the 23.6% Fib retracement level of the recent decline from the 1.3527 swing high to the 1.3248 low.

The main hurdle could be 1.3385. There is also a major bearish trend line forming with resistance at 1.3385 and the 50% Fib retracement level of the recent decline from the 1.3527 swing high to the 1.3248 low. A close above the trend line resistance might push the pair to the 100 simple moving average (red, 4-hour) or even the 200 simple moving average (green, 4-hour).

On the downside, the pair might find support at 1.3250. The main support might be 1.3200. A close above 1.3200 could send the pair toward 1.3120. Any more losses might open the doors for a test of 1.3000.

Looking at EUR/USD, the pair faced an increase in selling pressure, resulting in a drop below the 1.1600 support zone.

Upcoming Key Economic Events:

  • ECB's De Guindos speech.
  • BoE's Ramsden speech.
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