GBP/USD Tests Key Support, Euro Extends Losses

Key Highlights

  • GBP/USD declined below 1.3600, but it found support near 1.3550.

  • A possible double top pattern is forming near 1.3700 on the 4-hours chart.

  • EUR/USD extended its decline below the 1.2080 support level before correcting higher.

  • Gold price is facing an uphill task near $1,860 and $1,880.


GBP/USD Technical Analysis


After struggling to clear 1.3700, the British Pound started a fresh decline against the US Dollar. GBP/USD broke the 1.3650 and 1.3600 support levels to start the recent decline.



Looking at the 4-hours chart, the pair seems to be forming a double top pattern near the 1.3700 zone. The recent swing high was formed near 1.3710 before the pair declined steadily.


It traded below the 50% Fib retracement level of the upward move from the 1.3450 low to 1.3710 high. There was a spike below the 1.3550 support, a connecting bullish trend line, and 100 simple moving average (red, 4-hours).


If there is a proper close below the 1.3550 level, the pair could continue to slide towards the 200 simple moving average (green, 4-hours) or even 1.3450. Any more losses may possibly push GBP/USD towards the 1.3280 level.


Conversely, the pair could hold the 1.3550 zone and start a fresh recovery. To break the double top pattern, the pair must surpass the 1.3700 barrier.


Looking at EUR/USD, there were further losses below 1.2080 before it corrected higher. Overall, the US Dollar seems to be gaining ground against majors, but it has a long way to go.


Economic Releases

  • German ZEW Business Economic Sentiment Jan 2021 – Forecast 60, versus 55 previous.

  • Euro Zone ZEW Business Economic Sentiment Jan 2021 – Forecast 45.5, versus 54.4 previous.


1 view0 comments

Recent Posts

See All

Credit 

Caution:

Trading involves the possibility of financial loss. Only trade with money that you are prepared to lose, you must recognize that for factors outside your control you may lose all of the money in your trading account. Many forex brokers also hold you liable for losses that exceed your trading capital. So you may stand to lose more money than is in your account. Smart Analysis Pvt takes not responsibility for loss incurred as a result of our trading signals. By signing up as a member you acknowledge that we are not providing financial advice and that you are making a the decision to copy our trades on your own account. We have no knowledge on the level of money you are trading with or the level of risk you are taking with each trade. You must make your own financial decisions, we take no responsibility for money made or lost as a result of our signals or advice on forex related products on this website.

PayPal

Credit  & Debit Card

  • Black Facebook Icon
  • Black Instagram Icon
  • Black YouTube Icon

© 2023 by Personal Life Coach. Proudly created with Wix.com