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GBP/USD Reversal Triggers Bearish Pressure, $1.3450 In Focus

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Aayush Jindal

Key Highlights

  • GBP/USD was rejected near the 1.3650 resistance.
  • It traded below a bullish trend line with support at 1.3580 on the 4-hour chart.
  • EUR/USD could struggle to stay above 1.1650 if it remains below 1.1750.
  • USD/JPY is showing signs of more upside above the 158.00 resistance.

GBP/USD Technical Analysis

The British Pound failed to surpass 1.3650 against the US Dollar. GBP/USD reacted to the downside and traded below the 1.3600 support.

Looking at the 4-hour chart, the pair traded below a bullish trend line with support at 1.3580. There was a sharp decline below 1.3550 and the 100 simple moving average (red, 4-hour). If the bears remain in action, the pair could continue to move down.

The first major support sits at the 200 simple moving average (green, 4-hour) at 1.3455. The next support could be 1.3400. A close below 1.3400 might initiate a drop to 1.3320.

On the upside, the pair faces resistance at 1.3550 and the 100 simple moving average (red, 4-hour). The first major resistance sits at 1.3580. The main resistance could be 1.3650. A close above 1.3650 could open doors for gains above 1.3680. In the stated case, the bulls could aim for a move to 1.3800.

Looking at EUR/USD, the pair is again moving lower, and the bears could aim for a clear move below the 1.1650 support.

Upcoming Key Economic Events:

  • US Initial Jobless Claims - Forecast 205K, versus 200K previous.
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