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GBP/USD Consolidates But This Resistance Holds The Key

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Aayush Jindal

Key Highlights

  • GBP/USD is holding the 1.3840 support zone.
  • A key bullish trend line is forming with support near 1.3845 on the 4-hours chart.
  • EUR/USD is showing positive signs above 1.2050 and 1.2000.
  • Gold price started consolidating gains above the $1,750 support zone.

GBP/USD Technical Analysis

The British Pound struggled near 1.4000 and corrected lower against the US Dollar. GBP/USD declined below 1.3880, but it is stable above a major support.

Looking at the 4-hours chart, the pair corrected from the 1.4009 high. There was a break below the 50% Fib retracement level of the upward move from the 1.3715 swing low to 1.4009 high.

However, it found a strong buying interest near the 1.3840 zone, the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours). It also found support near the 61.8% Fib retracement level of the upward move from the 1.3715 swing low to 1.4009 high.

There is also a key bullish trend line forming with support near 1.3840 on the same chart. If there is a downside break below the trend line support, the pair could decline towards the 1.3750 level.

On the upside, an initial resistance is near the 1.3925 zone. The main resistance is still near the 1.4000 zone. A successful close above the 1.4000 zone could open the doors for a steady rise in the coming sessions.

Overall, GBP/USD could revisit 1.4000 as long as it is above 1.3840. Besides, EUR/USD is still strong above the 1.2050 and 1.2000 support levels.

Economic Releases

  • S&P/Case-Shiller Home Price Indices for Feb 2021 (YoY) - Forecast +11.6%, versus +11.1% previous.
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