Wed, Feb 08, 2023 @ 00:18 GMT
HomeContributorsTechnical AnalysisGBP/USD Eyes Fresh Rally, Dollar Dips Further

GBP/USD Eyes Fresh Rally, Dollar Dips Further

Key Highlights

  • GBP/USD is holding gains above the 1.2000 support zone.
  • It is trading above a key bullish trend line with support near 1.1960 on the 4-hours chart.
  • Crude oil price declined heavily and tested the $74.20 support zone.
  • EUR/USD started a fresh increase and climbed above 1.0400.

GBP/USD Technical Analysis

The British Pound started a fresh increase above the 1.1800 resistance against the US Dollar. GBP/USD even cleared the 1.2000 resistance to move into a positive zone.

Looking at the 4-hours chart, the pair settled above the 1.2000 level, the 100 simple moving average (red, 4-hours) plus the 200 simple moving average (green, 4-hours).

It traded to a new multi-week high at 1.2153 before there was a minor downside correction. An initial support is near the 1.2000 level. The next major support is near the 1.1960 zone. There is also a key bullish trend line forming with support near 1.1960 on the same chart.

Any more losses might send the pair towards the 1.1850 support zone. On the upside, the pair might gain bullish momentum once it settles above the 1.2150 level.

In the stated case, GBP/USD may perhaps test the 1.2250 resistance. The next major resistance may perhaps be near 1.2380. Any more gains could set the pace for a move towards the 1.2500 resistance zone.

Looking at EUR/USD, the pair remained well bid above the 1.1300 level and might continue to rise towards the 1.1500 resistance zone.

Economic Releases

  • German Consumer Price Index for Nov 2022 (YoY) (Prelim) – Forecast +10.3%, versus +10.4% previous.
  • German Consumer Price Index for Nov 2022 (MoM) (Prelim) – Forecast -0.2%, versus +0.9% previous.
  • US Housing Price Index for Sep 2022 (MoM) – Forecast -0.7%, versus -0.7% previous.
  • Canadian Gross Domestic Product for Q3 2022 (Annualized) – Forecast +3.5%, versus 3.3% previous.
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