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GBP/USD Reverses Gains As Bears Eye Full Pullback

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Aayush Jindal

Key Highlights

  • GBP/USD started a fresh decline below 1.3650 and 1.3600.
  • A key bearish trend line is forming with resistance at 1.3640 on the 4-hour chart.
  • EUR/USD is moving lower below the 1.1880 support.
  • Gold seems to be facing tough resistance at $5,140.

GBP/USD Technical Analysis

The British Pound peaked near 1.3870 against the US Dollar. GBP/USD started a fresh decline and gained bearish momentum below 1.3720.

Looking at the 4-hour chart, the pair dipped below the 50% Fib retracement level of the upward move from the 1.3342 swing low to the 1.3869 high. The pair even settled well below the 100 simple moving average (red, 4-hour) and dipped below the 200 simple moving average (green, 4-hour).

Immediate support could be 1.3465 and the 76.4% Fib retracement level of the upward move from the 1.3342 swing low to the 1.3869 high. The first major area for the bulls might be near 1.3420.

The main support sits at 1.3350, below which the pair might gain bearish momentum. In the stated case, it could even revisit 1.3300.

On the upside, the pair is now facing hurdles near 1.3585. The next stop for the bulls might be 1.3640. There is also a key bearish trend line forming with resistance at 1.3640. A close above 1.3640 could open the doors for more gains. In the stated case, the bulls could aim for a move to 1.3720. The main resistance sits near 1.3800.

Looking at EUR/USD, the pair is slowly moving lower and might decline sharply if there is a close below 1.1765.

Upcoming Key Economic Events:

  • UK Consumer Price Index for Jan 2026 (YoY) – Forecast +3.0%, versus +3.4% previous.
  • UK Core Consumer Price Index for Jan 2026 (YoY) – Forecast +3.1%, versus +3.2% previous.
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