Key Highlights
- GBP/USD extended losses and tested the 1.2600 support.
- A connecting bearish trend line is forming with resistance at 1.2700 on the 4-hour chart.
- Bitcoin started a consolidation phase near the $90,000 zone.
- Oil is correcting losses and trading near the $69.50 zone.
GBP/USD Technical Analysis
The British Pound started a fresh decline below the 1.2800 support against the US Dollar. GBP/USD traded below 1.2720 to move into a negative zone.
Looking at the 4-hour chart, the pair settled below the 1.2700 level, the 100 simple moving average (red, 4-hour), and the 200 simple moving average (green, 4-hour). Finally, the bulls appeared near the 1.2600 support zone.
A low was formed at 1.2597 and the pair is now attempting to recover. On the upside, the pair could face resistance near the 1.2700 level. There is also a connecting bearish trend line forming with resistance at 1.2700 on the same chart.
The trend line is close to the 23.6% Fib retracement level of the downward move from the 1.3009 swing high to the 1.2597 low. The first key resistance is near the 1.2750 level.
A close above the 1.2750 level could set the tone for another increase. The next major resistance could be 1.2800, above which the price could climb higher toward the 1.2850 resistance. It is near the 61.8% Fib retracement level of the downward move from the 1.3009 swing high to the 1.2597 low.
On the downside, immediate support sits near the 1.2640 level. The next key support sits near the 1.2600 level. Any more losses could send the pair toward the 1.2550 level or even 1.2500 in the near term.
Overall, GBP/USD is attempting to recover but it might face many hurdles near 1.2700 or 1.2750 in the near term.
Looking at Bitcoin, the price gained traction for a new all-time high above $92,000 and is currently consolidating gains.
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