GBP/USD: Here’s Why Recovery Won’t Be Easy
- GBP/USD is correcting higher from 1.3670 and it climbed above 1.3750.
- A crucial bearish trend line is forming with resistance near 1.3880 on the 4-hours chart.
- EUR/USD is still facing an uphill task near the 1.1840 and 1.1850 levels.
- Gold price is consolidating below the key $1,750 resistance zone.
GBP/USD Technical Analysis
This past week, the British Pound extended its decline below 1.3800 against the US Dollar. GBP/USD even broke the 1.3700 level before it found support near 1.3670.
Looking at the 4-hours chart, the pair started a decent increase above the 1.3700 and 1.3750 levels. The pair even broke a crucial resistance near 1.3800 (the last breakdown zone).
The pair tested the 50% Fib retracement level of the downward move from the 1.4001 high to 1.3670 low. On the upside, there is a major resistance forming near the 1.3865 level and the 100 simple moving average (red, 4-hours).
There is also a crucial bearish trend line forming with resistance near 1.3880 on the same chart. The trend line is close to the 200 simple moving average (green, 4-hours).
If there is an upside break above the trend line, the pair could rise towards the 1.4000 resistance zone. On the downside, the pair might remain supported near the 1.3800 level. Any more losses could lead the pair towards the 1.3720 support zone.
Overall, GBP/USD is likely to face resistance near 1.3880 and 1.3900. Similarly, EUR/USD is likely to struggle above 1.1850.
- German Consumer Price Index for March 2021 (YoY) – Forecast +2.0%, versus +1.6% previous.
- German Consumer Price Index for March 2021 (MoM) – Forecast +0.5%, versus +0.7% previous.
- US CB Consumer Confidence for March 2021 - Forecast 97.0, versus 91.3 previous.