Key Highlights
- GBP/USD started a fresh increase and climbed above 1.3500.
- A key rising channel is forming with support near 1.3475 on the 4-hours chart.
- EUR/USD seems to be facing another hurdle near 1.1380.
- The US ISM Manufacturing Index could drop from 61.1 to 60.2 in Dec 2021.
GBP/USD Technical Analysis
The British Pound started a fresh increase from the 1.3200 zone against the US Dollar. GBP/USD climbed above the 1.3350 and 1.3400 resistance levels to move into a positive zone.
Looking at the 4-hours chart, the pair settled above the 1.3400 level, the 100 simple moving average (red, 4-hours) and the 200 simple moving average (green, 4-hours).
The pair even climbed above the 1.3500 level and tested 1.3550. It is now consolidating gains and facing resistance near 1.3550. The next major resistance is near the 1.3620 level. A close above 1.3620 could open the doors for a steady increase.
On the downside, an immediate support is near the 1.3480 level. There is also a key rising channel forming with support near 1.3475 on the same chart.
A downside break below the channel support might send the pair towards 1.3420. Any more losses might send the pair towards the 1.3350 level and the 100 simple moving average (red, 4-hours).
Looking at EUR/USD, the pair surpassed the 1.1350 resistance, but there was no clear move above the 1.1380 and 1.1390 levels.
Economic Releases
- Germany’s Unemployment Change for Dec 2021 – Forecast -15K, versus -34K previous.
- Germany’s Unemployment Rate for Dec 2021 – Forecast 5.3%, versus 5.3% previous.
- UK Manufacturing PMI for Dec 2021 – Forecast 57.6, versus 57.6 previous.
- US ISM Manufacturing Index for Dec 2021 – Forecast 60.2, versus 61.1 previous.
