GBP/USD Pulls Back as WTI Crude Oil Surges Past $88
The GBP/USD pair has been experiencing a pullback, failing to surpass the 1.3675 level and instead trading below a major bullish trend line with support at 1.3570 on the 4-hour chart.
WTI Crude Oil prices have seen a fresh surge, pushing above $88.00, while EUR/USD has started consolidating losses above the 1.1550 support level.
The GBP/USD technical analysis suggests that the pair has traded below both 1.3620 and 1.3600 levels, entering a short-term bearish zone.
Looking at the 4-hour chart, the pair's dip can be attributed to its settlement below the 100 simple moving average (red) and the 38.2% Fib retracement level of the upward move from the 1.3273 swing low to the 1.3675 high.
With more losses, the first major support for GBP/USD could be near 1.3480 and the 200 simple moving average (green) or the 50% Fib retracement level.