GBP/USD extended decline below 1.3500 and 1.3450.
A key bearish trend line is forming with resistance near 1.3460 on the 4-hours chart.
EUR/USD failed to recover and declined further below 1.1400.
The UK ILO Unemployment Rate could drop from 4.5% to 4.4% in Sep 2021 (3M).
GBP/USD Technical Analysis
The British Pound failed to stay above 1.3500 and extended decline against the US Dollar. GBP/USD traded below the 1.3450 support and even tested 1.3350.
Looking at the 4-hours chart, the pair traded as low as 1.3353. It settled well below the 1.3500 level, the 200 simple moving average (green, 4-hours), and the 100 simple moving average (red, 4-hours).
It is now correcting losses and trading above 1.3400. There was a break above the 23.6% Fib retracement level of the recent decline from the 1.3608 swing high to 1.3353 low.
An immediate resistance is near the 1.3440 level. The next major resistance is near the 1.3450 level. There is also a key bearish trend line forming with resistance near 1.3460 on the same chart.
The main resistance is forming near 1.3480. It is close to the 50% Fib retracement level of the recent decline from the 1.3608 swing high to 1.3353 low. A clear break above the 1.3450 and 1.3480 resistance levels could open the doors for a steady increase. The next key resistance could be 1.3550.
An immediate support is near the 1.3420 level. The main breakdown support is near the 1.3400 level, below which there is a risk of more losses. The next major support is near the 1.3350 level.
Looking at EUR/USD, the pair failed to start a decent recovery wave and extended decline below the key 1.1400 support zone.
UK Claimant Count Change for Oct 2021 – Forecast -30.0K, versus -51.1K previous.
UK ILO Unemployment Rate for Sep 2021 (3M) – Forecast 4.4%, versus 4.5% previous.
Euro Zone Gross Domestic Product for Q3 2021 (Prelim) (QoQ) – Forecast 2.2%, versus 2.2% previous.
US Retail Sales for Oct 2021 (MoM) – Forecast +0.7%, versus +0.7% previous.