Key Highlights
- GBP/USD corrected lower from the 1.2580 zone.
- A key bullish trend line is forming with support near 1.2430 on the 4-hour chart.
- USD/JPY extended its rally and climbed above the 137.00 level.
- Gold price is struggling to gain pace for a move above $2,000.
GBP/USD Technical Analysis
The British Pound remained in a positive zone above the 1.2400 level against the US Dollar. GBP/USD even climbed above the 1.2520 and 1.2550 resistance levels.
Looking at the 4-hour chart, the pair traded to a new multi-week high at 1.2583 before it faced sellers. There was a minor downside correction below the 1.2550 level, but the pair is trading well above the 100 simple moving average (red, 4 hours).
There is also a key bullish trend line forming with support near 1.2430 on the same chart. The trend line is close to the 100 simple moving average (red, 4 hours).
If there is a downside break below the trend line, the pair might slide toward the 1.2400 support zone or the 200 simple moving average (green, 4 hours). The next major support sits near the 1.2340 level.
Immediate resistance on the upside is near the 1.2550 level. The next key resistance is near the 1.2580 level. A clear upside break and close above the 1.2580 resistance might start a strong increase. The next key resistance is near the 1.2620 zone. Any more gains might send the pair toward 1.2700.
Looking at USD/JPY, there were strong bullish moves and the pair even climbed to a new multi-month high above the 137.00 level.
Economic Releases
- Euro Zone CPI for April 2023 (YoY) (Prelim) – Forecast +6.9%, versus +6.9% previous.
- Euro Zone Core CPI for April 2023 (YoY) (Prelim) – Forecast +5.7%, versus +5.7% previous.
- US Factory Orders for March 2023 (MoM) – Forecast +0.8%, versus -0.7% previous.
