Key Take-aways
- Below the 1.2250 support, the GBP/USD rate fell precipitously.
- On the 4-hours chart, it traded below a significant bullish trend line at 1.2370.
- Below the 1.0800 support, the EUR/USD’s drop deepened.
- The $1,850 support may see additional declines in gold price.
Technical Analysis of GBP/USD
A few efforts were made by the British Pound to break over the 1.2450 resistance level against the US Dollar. GBP/USD, however, fell short and began a new drop below 1.2400.
The pair fell below the 1.2320 and 1.2250 support levels, according to the 4-hours chart. At 1.2370, a significant bullish trend line was broken. The upward movement from the 1.1841 swing low to 1.2447 high was retraced around 61.8% Fibonacci level, which the pair even went below.
The 100 simple moving average (red, 4-hours), the 200 simple moving average, and the 1.220 level were all broken by the pair.
Near the 1.2000 level, or the 76.4% Fibonacci retracement level of the upward movement from the 1.1841 swing low to 1.2447 high, is an immediate support. The last significant swing low, or the area around 1.1850, is the next significant support.
The pair may fall toward the 1.1750 level if there is a negative break. The pair is up against resistance near 1.2110.
Near the 1.2180 level and the 200 simple moving average is the first significant barrier. A definite move over the 1.2180 resistance could signal the beginning of a persistent rise in direction of the 1.2250 resistance area.
Any further advances might pave the way for a move in the direction of 1.2320. The next significant obstacle is located around 1.2450; if it is cleared, the pair might move up to the 1.2620 resistance region.
The bears continued to be busy in the gold market, and it appears that they may be planning a move in the near future towards the $1,850 level.
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