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GBP/USD Retreats — Bulls Eye Bounce From Support

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Aayush Jindal

Key Highlights

  • GBP/USD corrected gains from the 1.3800 resistance.
  • It found support near 1.3580 and the 100 simple moving average (red, 4-hour).
  • EUR/USD started a consolidation phase below the 1.1820 resistance.
  • Gold prices could extend losses if there is a move below $3,280.

GBP/USD Technical Analysis

The British Pound failed to clear 1.3800 against the US Dollar. GBP/USD started a downside correction and traded below the 1.3700 level.

Looking at the 4-hour chart, the pair dipped below the 38.2% Fib retracement level of the upward move from the 1.3370 swing low to the 1.3788 high. The pair even dipped below the 1.3650 level before the bulls appeared.

The pair found support near the 50% Fib retracement level of the upward move from the 1.3370 swing low to the 1.3788 high at 1.3580. It remained stable above the 100 simple moving average (red, 4-hour) and the 200 simple moving average (green, 4-hour).

On the upside, the pair could face resistance near the 1.3660 level. The next key resistance sits near the 1.3720 level. A close above the 1.3720 level could set the pace for another increase. In the stated case, the pair could even clear the 1.3750 resistance. The next major stop for the bulls could be near the 1.3800 resistance.

On the downside, immediate support is near the 1.3580 level. The next key support sits near 1.3550. Any more losses could send the pair toward the 1.3500 support zone.

Looking at EUR/USD, the pair failed to extend gains above the 1.18200 resistance and recently started a short-term downside correction.

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