Gold Prices and GBP/USD Forecast:
- Gold prices fell, affected by higher US yields
- GBP/USD is losing ground after failing to remove the general resistance at 1.2680
- This article discusses the key GBP/USD and XAU/USD technical levels to watch in the near term
Most read: Gold prices are deviating from the bullish trajectory as the USD companies remain bullish
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Technical analysis of gold prices
Gold prices fell on Tuesday, dragged down by a rise in US Treasury yields after better-than-expected US economic data and the Fed’s hawkish speaking. In this context, the XAU/USD pair fell more than 1.3% to settle near $1,988 an ounce in late afternoon trading, marking its lowest level since early May.
In terms of technical analysis, gold gave up the $2,000 level after Tuesday’s sell-off, a sign that the bulls may be jumping in. If XAU/USD fails to regain this threshold soon, the sentiment could turn more negative, paving the way for a move towards $1,975. On further weakness, the focus moves to $1,920.
Conversely, when buyers regain control of the market and decisively manage prices above the $2,000 mark, the metal can regain its composure, creating a more favorable environment for an initial rush towards $2,050, followed by $2,070, which is the last boundary above all-highs. the time.
Gold price chart
Gold price chart prepared using TradingView
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Technical analysis of the GBP/USD pair
The GBP/USD has been rising strongly since early March, but the bullish momentum is fading after a failed attempt to climb above the 1.2680 resistance level, with the pair now reversing after repelling lower by Descending trend line Extending from its highest levels in 2021.
While the broader technical outlook for Cable remains constructive, the situation could change if the bulls fail to defend the block support at 1.2440, an area where the medium term holds. Uptrend line In line with several swing highs from last year and early 2023. If this floor is breached, sellers could launch an attack on 1.2355, followed by 1.2285. With further weakness, a larger decline towards 1.1975 cannot be ruled out.
In case of an upward shift, the dynamic resistance is located at 1.2620. Continuous movement above this ceiling is required to obtain a stable opportunity to regain 1.2680. If both barriers are removed, the bulls may become emboldened to challenge 1.2765, 61.8% Fibonacci retracement of the 2021/2022 sell-off.
Technical chart of the GBP/USD pair
