GBP/USD Struggles At New 37-Year Low, Gold Dips

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Key Highlights

• GBP/USD traded to a new 37-year low at 1.1350.
• It traded below a connecting bullish trend line with support at 1.1495 on the 4-hours chart.
• EUR/USD is consolidating losses below the 1.0050 resistance zone.
• Gold price declined and traded below the $1,670 level.

GBP/USD Technical Analysis

The British Pound started a fresh decline from the 1.1720 zone against the US Dollar. GBP/USD gained bearish momentum below the 1.1650 and 1.1580 levels.

Looking at the 4-hours chart, the pair extended losses below the 1.1500 support, the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours).

The bears gained strength and pushed the pair below the 1.1400 support. GBP/USD traded to a new 37-year low at 1.1350. It is now consolidating losses and facing resistance near the 1.1450 level. The first major resistance is near the 1.1485 level.

The next major resistance might be 1.1550 and the 100 simple moving average (red, 4-hours). A clear move above the 1.1550 and 1.1560 levels could open the doors for a larger increase. In the stated case, the pair might rise towards the 1.1650 and 1.1720 levels.

On the downside, an initial support is near the 1.1350 level. A downside break below the 1.1350 support might send the pair towards the 1.1280 level.

The next major support is near the 1.1200 level, below which the pair could even test the 1.1000 level in the coming days.

Looking at gold price, the bears seem to be active below the $1,680 level and there is a risk of a move below the $1,650 support zone.

Economic Releases

• US Housing Starts for August 2022 (MoM) – Forecast 1.445M, versus 1.446M previous.
• US Building Permits for August 2022 (MoM) – Forecast 1.610M, versus 1.685M previous.
• Canadian Consumer Price Index for August 2022 (MoM) – Forecast -0.1%, versus +0.1% previous.
• Canadian Consumer Price Index for August 2022 (YoY) – Forecast +7.3%, versus +7.6% previous.