GBP/USD Price Analysis: Descending trend-line, around mid-1.3600s continues to cap gains

GBP/USD regained positive traction on Monday amid the emergence of fresh USD selling.
Russia-Ukraine tensions tempered the initial optimism and helped limit the USD downfall.
Bulls need to wait for sustained breakthrough a downwards sloping trend-line resistance.

Haresh Menghani FXStreet

The GBP/USD pair attracted fresh buying on the first day of a new week and climbed to the 1.3640 area, back closer to the monthly high tested last week.

The optimism led by the news that US President Joe Biden and his Russian counterpart Vladimir Putin have agreed in principle to hold a summit on the Ukraine crisis undermined the safe-haven US dollar. Apart from this, rising bets for an additional interest rate hike by the Bank of England acted as a tailwind for the British pound and provided an additional lift to the GBP/USD pair.

The initial market reaction, however, turned out to be short-lived and faded rather quickly after a Kremlin spokesperson said that there were no concrete plans yet for a Putin-Biden meeting. Adding to this, UK Foreign Minister Liz Truss said that a Russian invasion of Ukraine looks highly likely drove some haven flows towards the buck and capped gains for the GBP/USD pair.

From a technical perspective, the pair, so far, has been struggling to break through a downward sloping trend-line resistance extending from July 2021. This is closely followed by the very important 200-day SMA, around the 1.3685 region and the 1.3700 mark. Sustained strength beyond will set the stage for a further appreciating move amid bullish technical indicators on the daily chart.

The GBP/USD pair might then aim to retest the YTD high, around mid-1.3700s before extending the momentum further towards reclaiming the 1.3800 mark for the first time since October 2021.

On the flip side, any meaningful decline might continue to attract some dip-buying near the 1.3600 mark and remain limited near the 1.3575-1.3570 region. Some follow-through selling, leading to subsequent weakness below near mid-1.3500s could make the GBP/USD pair vulnerable. The downward trajectory could then get extended towards challenging the key 1.3500 psychological mark.

GBP/USD daily chart

Technical levels to watch

GBP/USD

Overview
Today last price	1.3619
Today Daily Change	0.0022
Today Daily Change %	0.16
Today daily open	1.3597

Trends
Daily SMA20	1.3525
Daily SMA50	1.3496
Daily SMA100	1.3507
Daily SMA200	1.369

Levels
Previous Daily High	1.3643
Previous Daily Low	1.3573
Previous Weekly High	1.3643
Previous Weekly Low	1.3487
Previous Monthly High	1.3749
Previous Monthly Low	1.3358
Daily Fibonacci 38.2%	1.36
Daily Fibonacci 61.8%	1.3616
Daily Pivot Point S1	1.3566
Daily Pivot Point S2	1.3535
Daily Pivot Point S3	1.3496
Daily Pivot Point R1	1.3636
Daily Pivot Point R2	1.3674
Daily Pivot Point R3	1.3705

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

EUR/USD seems fragile below 1.1700 as Middle East war boosts energy prices

The EUR/USD pair trades flat at around 1.1680 during the Asian trading session on Tuesday, but broadly seems vulnerable, being close to its five-week low. The major currency pair is under pressure as surging oil prices due to the United States-Israel war with Iran have increased the risks of higher inflation for the Old Continent.

GBP/USD hovers around 1.3400 with bearish pressure intact

GBP/USD edges higher after three days of losses, trading around 1.3400 during the Asian hours on Tuesday. The technical analysis of the daily chart indicates an ongoing bearish bias, as the pair trades within a descending channel pattern.

Gold stays bullish as Iran war continues to spur safe-haven flows

Gold is finding renewed bids in Asian trades on Tuesday, making another attempt to regain the $5,400 level amid persistent demand for safe-haven assets as the Iran war extends. A softer risk tone remains in play as US President Donald Trump continues to threaten deeper escalation to the ongoing war with Iran, warning that a “big wave” is yet to come.

Top Crypto Gainers: Near Protocol, Virtuals Protocol, and Morpho lead market recovery

Near Protocol, Virtuals Protocol, and Morpho are leading the market recovery with double-digit gains over the last 24 hours. Technically, NEAR extends the breakout of the falling channel pattern, VIRTUAL holds above the 50-day EMA, while MORPHO tests a crucial resistance.

The market is not panicking it is repricing the probability distribution of Oil and time

At the end of the day, markets do not trade morality or geopolitics. They trade transmission channels. And the only channel that truly matters in this maelstrom runs through the price of energy and the time value of money.

Grass 20% bullish breakout defies broader market weakness

Grass (GRASS) is edging up above $0.30 at the time of writing on Monday. The token’s notable 20% intraday surge stands out amid heightened volatility in the broader crypto market.