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GBP/USD Signals Breakdown As US GDP Takes Center Stage

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Aayush Jindal

Key Highlights

  • GBP/USD faced rejection near 1.3420 and reacted to the downside.
  • A bearish trend line is forming with resistance at 1.3340 on the 4-hour chart.
  • WTI Crude Oil prices might gain momentum if there is a move above $105.00.
  • EUR/USD is struggling to recover and might extend losses.

GBP/USD Technical Analysis

The British Pound failed to surpass 1.3420 against the US Dollar. GBP/USD started a fresh decline below the 1.3350 and 1.3320 support levels.

Looking at the 4-hour chart, the pair even traded below the 100 simple moving average (red, 4-hour) and is below the 200 simple moving average (green, 4-hour). It tested the 50% Fib retracement level of the upward move from the 1.3136 swing low to the 1.3419 high.

If the bears remain in action, the pair could decline toward the 1.3250 support. The first major support might be 1.3200. A close below 1.3200 might accelerate the decline. In the stated case, the pair might drop to 1.3120. The main support might be close to 1.3040.

On the upside, the pair could face resistance near the 200 simple moving average (green, 4-hour) at 1.3325. The first major resistance might be 1.3340 and a bearish trend line.

A close above 1.3340 could start a steady increase. In the stated case, the pair might even surpass 1.3400. The main hurdle could still be 1.3420, above which GBP/USD could test 1.3500.

Looking at WTI Crude Oil, the bulls remain in action, and they might aim for a bullish wave in the coming sessions.

Upcoming Key Economic Events:

  • US Gross Domestic Product for Q3 2026 (Preliminary) – Forecast 3.2% versus previous 2.2%.
  • US Initial Jobless Claims - Forecast 199K, versus 194K previous.
  • US Personal Income for Sep 2026 (MoM) - Forecast +0.3%, versus +0.2% previous.
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