GBP/USD Declines Further, Gold Dropping

Key Take-Aways

At 1.1350, GBP/USD reached a fresh 37-year low.

On the 4-hours chart, it traded below a connecting positive trend line that had support at 1.1495.

Below the 1.0050 barrier zone, the EUR/USD is consolidating its losses.

The price of gold dropped and traded below the $1,670 mark.

Technical Analysis of GBP/USD

From the 1.1720 area versus the US Dollar, the British pound began a new drop. Below the 1.1650 and 1.1580 levels, GBP/USD started to trend lower.

The pair extended losses below the 1.1500 support, the 100 simple moving average (red, 4-hours), and the 200 simple moving average, according to the 4-hours chart.

The pair was driven beneath the 1.1400 support as the bears gained momentum. At 1.1350, GBP/USD reached a fresh 37-year low. It is currently consolidating losses and running into resistance close to 1.1450. The 1.1485 level serves as the first significant resistance.

The 100 simple moving average and 1.1550 may serve as the next significant resistance. A definite advance over the levels of 1.1550 and 1.1560 would pave the way for a larger increase. In the described scenario, the pair may increase toward 1.1650 and 1.1720 area.

An initial support for the downside is located close to the 1.1350 level. The pair may move toward the 1.1280 level if the downside breaks below the 1.1350 support.

The pair may potentially test the 1.1000 level in the coming days if they fall below the next significant support, which is located close to the 1.1200 level.

The bears appear to be active in the gold market below the $1,680 mark, and a drop below the $1,650 support area is possible.

Economic News To Trade Today

US housing starts for August 2022 (MoM) are predicted to be 1.445M, up from 1.446M in the previous month.

US Building Permits for August 2022 (MoM): 1.610M forecast, down from 1.685M in the previous month.

The Canadian Consumer Price Index for August 2022 (MoM), Forecast -0.1% down from the prior +0.1%.

Amogo Solomon is a Broker-Dealer/Market Research analyst and writer in ACT Brokers with a background in Computer Science, Data Analytics, and Forex Broker Dealing. He specializes in Forex Dealing, markets Analysis, Currency research, forex fundamental and technical analysis, and Monitoring of Forex trends, Stocks, Equities, Cryptos, and Commodities. He possesses strong technical and analytical skills and is well known for his entertaining and informative analysis of the global economy, fiat currency, commodities, Stocks, Indexes, Futures, and Options markets. He held a Bachelor's degree in Computer Science and Nanodegree in Programming for Data Science Enterprise.