- The British pound declined recently below the 1.3050 support against the US dollar.
- A key bullish trend line is forming with support at 1.2948 on the 4-hour chart of GBP/USD.
GBP/USD Technical Analysis
Looking at the 4-hours chart, the pair broke the 1.3050 level and the 200 simple moving average (green, 4-hours). The decline was such that the pair even traded below the 1.3000 handle and the 100 simple moving average (4-hours, red).
On the upside, it seems like the 1.3050 level and the 200 simple moving average (green, 4-hours) are strong resistances along with the 38.2% Fib retracement level of the major drop from the 1.3176 high to 1.2941 low.
If there is an upside break above the 1.3030 and 1.3050 levels, GBP/USD could recover towards the 1.3100 and 1.3120 levels.
On the downside, there is crucial support near 1.2950 and a key bullish trend line 1.2948 on the same chart. If there is a downside break below the trend line, the pair could retest the 1.2875 swing low. The next key supports are near 1.2845 and 1.2820.
GBP/USD, 4 Hour
GBP/USD Trading Near Make-Or-Break Support
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