GBP/USD Could Recover If Bulls Clear This Hurdle

GBP/USD retested key 1.1920 support zone.
A major bearish trend line is forming with resistance near 1.2060.
EUR/USD is attempting a recovery wave above the 1.0600 resistance zone.
Gold price is struggling to stay above the $1,800 support.

The British Pound started a fresh decline from well above 1.2100 against the US Dollar. GBP/USD traded below the 1.2000 support to enter a bearish zone. The pair settled below the 1.2050 support level, the 100 simple moving average and the 200 simple moving average. It retested the key 1.1920 support zone. A low was formed near 1.1922 and the pair recently started an upside correction. There was a wave above the 1.1950 and 1.2000 resistance levels.

GBP/USD spiked above the 50% Fib retracement level of the downward move from the 1.2147 swing high to 1.1922 low. On the upside, an immediate resistance is near the 1.2060 level. There is also a major bearish trend line forming with resistance near 1.2060. The next major resistance is near the 1.2100 level. A clear move above the 1.2100 resistance might start a steady increase.

On the downside, an immediate support is near the 1.1950 level. The mext major support is near the 1.1920 level, below which there is a risk of a move towards the 1.1850. Any more losses could open the doors for a drop towards 1.1720.