Thu, Feb 09, 2023 @ 06:44 GMT
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GBP/USD Could Rally Above This Resistance

Key Highlights

  • GBP/USD could gain pace if it clears the 1.2215 resistance.
  • It broke a major bearish trend line with resistance near 1.2050 on the 4-hours chart.
  • EUR/USD broke the 1.0700 resistance and might rise further.
  • Gold price rallied further above the $1,875 resistance.

GBP/USD Technical Analysis

The British Pound found support near 1.1845 against the US Dollar. GBP/USD started a fresh increase and cleared a major hurdle near 1.2000.

Looking at the 4-hours chart, the pair was able to settle above the 1.2000 resistance. There was a clear move above a major bearish trend line with resistance near 1.2050.

The pair surpassed the 50% Fib retracement level of the downward move from the 1.2446 swing high to 1.1844 low. It settled above the 100 simple moving average (red, 4-hours) and the 200 simple moving average (green, 4-hours).

On the upside, an initial resistance is near the 1.2200 level. The next major resistance may perhaps be near 1.2215. It is near the 61.8% Fib retracement level of the downward move from the 1.2446 swing high to 1.1844 low.

A clear move above the 1.2215 resistance might start a steady increase. In the stated case, GBP/USD could even surpass the 1.2250 level. In the stated case, the pair could rise towards the 1.2400 level.

On the downside, there is a major support at 1.2100 and the 100 simple moving average (red, 4-hours). The main support is now forming near the 1.2035 level. A downside break below the 1.2035 zone might push the pair lower.

The next major support sits near the 1.1955 level. Any more losses might open the doors for a move towards the 1.1850 support zone.

Looking at EUR/USD, the pair is showing positive signs and might soon attempt a move above the 1.1800 resistance zone in the coming sessions.

Economic Releases

  • Federal Reserve Chair Jerome Powell Speech.
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