Aayush Jindal
Key Highlights
- GBP/USD started a fresh decline below the 1.3250 support.
- It traded below a major bullish trend line with support at 1.3375 on the 4-hour chart.
- Gold prices are stuck below the $2,680 resistance zone.
- Bitcoin recovered some losses and climbed above $63,000.
GBP/USD Technical Analysis
The British Pound failed to continue higher above 1.3420 and started a fresh decline against the US Dollar. GBP/USD traded below 1.3250 to enter a bearish zone.
Looking at the 4-hour chart, the pair traded below a major bullish trend line with support at 1.3375. There was a close below the 1.3200 level, the 100 simple moving average (red, 4-hour), and the 200 simple moving average (green, 4-hour).
The bears even pushed the pair below the 76.4% Fib retracement level of the upward move from the 1.3001 swing low to the 1.3432 high.
The pair might continue to move down. On the downside, immediate support sits near the 1.3040 level. The next key support sits near the 1.3000. Any more losses could send the pair toward the 1.2940 support.
On the upside, the bears might be active near the 1.3165 level. The first major resistance might be near the 1.3200 level. A close above the 1.3200 level could set the tone for another increase.
The next major resistance could be 1.3265 and the 100 simple moving average (red, 4-hour). A clear move above the 1.3265 level might send GBP/USD toward 1.3320. Any more gains might call for a test of the 1.3400 zone.
Looking at Gold, the bears seem to be active near the $2,680 level and there are chances of a short-term pullback.
Upcoming Economic Events:
- US Trade Balance for August 2024 - Forecast $-70.4B, versus $-78.8B previous.
