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 looks to stabilize near 1.1600 as focus shifts to US data

EUR/USD is looking to stabilize near 1.1600 in the European session on Wednesday as traders breathe a sigh of relief before the top-tier US ADP jobs and ISM Services PMI data. A pause in the US Dollar uptrend helps the pair's recovery, but surging energy prices due to the Iran war will likely remain a drag.

GBP/USD stays weak near 1.3350 as USD preserves gains

GBP/USD stays in the red below 1.3350 in the European session on Wednesday. Escalating conflict in the Middle East keeps the "flight to safety" theme intact, supporting the US Dollar against the Pound Sterling. Traders will take more cues from the US ADP Employment and ISM Services Purchasing Managers Index reports, which are due later on Wednesday.

Gold retains positive bias amid sustained safe-haven flows and modest USD pullback

Gold maintains its offered tone through the first half of the European session, though it lacks follow-through and remains below the $5,200 mark. Investors remain concerned about a prolonged conflict in the Middle East and its impact on the global economy amid an already uncertain environment.

ADP Employment Report set to signal stronger February jobs growth, little effect on Fed outlook

The Automatic Data Processing (ADP) Research Institute will release its monthly report on private-sector job creation for February on Wednesday. The so-called ADP Employment Change report is expected to show that the United States private sector added 50K new positions in the month, following the 22K gained in January.

Asian stocks fall as South Korea’s KOSPI slumps over 10%

Asian equities drop on Middle East tensions; the MSCI Asia Pacific Index falls up to 4%. South Korea’s KOSPI fell 10.71% near 5,170, with the Korean Won weakened past 1,500 per dollar.

Solana Price Forecast: SOL consolidation near resistance as ETF inflows offer mild support

Solana price is facing slight rejection as it approaches the upper boundary of the consolidation range at around $88 on Wednesday. Institutional demand is strengthening as spot Exchange Traded Funds recorded two consecutive inflows so far this week.