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GBP/USD Recovery Delayed? Watch for Major Resistance Ahead

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Aayush Jindal

Key Highlights

  • GBP/USD started a fresh decline below the 1.3620 support zone.
  • A connecting bearish trend line is forming with resistance at 1.3480 on the 4-hour chart.
  • USD/JPY struggled to continue higher above the 149.20 zone.
  • WTI Crude Oil is at risk of more losses below the $65.00 support.

GBP/USD Technical Analysis

The British Pound started a pullback from the 1.3780 zone against the US Dollar. GBP/USD dipped below the 1.3620 and 1.3550 support levels.

Looking at the 4-hour chart, the pair settled below the 1.3500 zone, the 100 simple moving average (red, 4-hour), and the 200 simple moving average (green, 4-hour). The bulls took a stand near the 1.3360 zone.

The pair is now consolidating losses and attempting to recover. There was a move toward the 23.6% Fib retracement level of the downward move from the 1.3788 swing high to the 1.3365 low.

On the upside, the pair could face resistance near the 1.3480 level and the trend line. The next key resistance sits near the 1.3520 level. A close above the 1.3520 level could set the pace for another increase.

In the stated case, the pair could rise toward the 1.3600 resistance and the 100 simple moving average (red, 4-hour). The next major stop for the bulls could be near the 1.3650 resistance.

On the downside, immediate support is near the 1.3400 level. The next key support sits near 1.3350. Any more losses could send the pair toward the 1.3300 support zone.

Looking at EUR/USD, the pair found support near the 200 simple moving average (green, 4-hour) and could start a fresh upward move.

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