GBP/USD failed to clear 1.4000 and corrected lower.
A key declining channel is forming with resistance near 1.3910 on the 4-hours chart.
EUR/USD could decline heavily if there is a clear break below 1.1740.
Gold price dropped sharply below the $1,750 support, crude oil price is also struggling below $70.00.
GBP/USD Technical Analysis
The British Pound attempted an upside break above 1.4000 against the US Dollar, but it failed. GBP/USD started a downside correction and it declined below the 1.3920 support zone.
Looking at the 4-hours chart, the pair also traded below the 1.3900 support. There was a break below the 23.6% Fib retracement level of the upward move from the 1.3571 swings low to 1.3981 high.
It seems like there is a key declining channel forming with resistance near 1.3910 on the same chart. If the pair climbs above the channel resistance, there could be a retest of 1.3980. The main resistance is still near the 1.4000 level. A successful break above 1.4000 may possibly open the doors for a larger increase. On the downside, the first key support is near 1.3825, the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours).
The next major support is near the 1.3775 zones. It is close to the 50% Fib retracement level of the upward move from the 1.3571 swings low to 1.3981 high. Any more downsides might trigger a move towards 1.3620. Looking at EUR/USD, the pair declined heavily below the 1.1850 support and it might struggle to recover in the near term. The main support on the downside is at 1.1740.
German ZEW Business Economic Sentiment Index for August 2021 – Forecast 57.0, versus 63.3 previous.