Sat, Oct 23, 2021 @ 18:24 GMT
HomeContributorsTechnical AnalysisGBP/USD: Resistance Turned Support Near 1.3800

GBP/USD: Resistance Turned Support Near 1.3800

Key Highlights

  • EUR/USD started a steady increase above the key 1.3800 resistance zone.
  • A major rising channel is forming with support near 1.3820 on the 4-hours chart.
  • EUR/USD corrected gains after it tested the 1.1900 resistance.
  • The Euro Zone GDP could contract 0.6% in Q2 2021 (QoQ).

GBP/USD Technical Analysis

The British Pound started a steady increase from the 1.3600 region against the US Dollar. GBP/USD broke the 1.3720 resistance to move into a positive zone.

Looking at the 4-hours chart, the pair gained pace after it broke the 1.3750 and 1.3800 resistance levels. There was also a close above 1.3800, the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours).

A high was formed near 1.3892 and the pair is now correcting gains. An immediate support is near 1.3820 or the 23.6% Fib retracement level of the upward move from the 1.3602 swing low to 1.3892 high.

There is also a major rising channel forming with support near 1.3820 on the same chart. If there is a downside break below the channel support, the pair could test 1.3745 and the 100 simple moving average (red, 4-hours).

The 50% Fib retracement level of the upward move from the 1.3602 swing low to 1.3892 high is also near the 1.3745 zone. Any more downsides might start a fresh decline towards 1.3600.

On the upside, an immediate resistance is near the 1.3875 zone. The next major resistance could be 1.3900, above which GBP/USD could test 1.4000.

Looking at EUR/USD, the pair was able to clear the main 1.1800 resistance, but it is now facing resistance near the 1.1900 region.

Economic Releases

  • Euro Zone Gross Domestic Product for Q2 2021 (QoQ) – Forecast -0.6%, versus +2.0% previous.
  • Euro Zone Gross Domestic Product for Q2 2021 (YoY) – Forecast 13.6%, versus 13.6% previous.
  • German ZEW Business Economic Sentiment Index for Sep 2021 – Forecast 30, versus 40.4 previous.

 

Titan FXhttp://titanfx.com
Titan FX is a technology driven online ECN forex and commodities broker that provides traders with next generation trading conditions, institutional grade spreads, fast trade execution, deep top tier liquidity and the security of financial registration and oversight.

Featured Analysis

Learn Forex Trading