HomeContributorsTechnical AnalysisGBP/USD Could Restart Increase Above This Resistance

GBP/USD Could Restart Increase Above This Resistance

Key Highlights

  • GBP/USD started a downside correction below the 1.2560 support.
  • It traded below a key bullish trend line with support near 1.2540 on the 4-hour chart.
  • EUR/USD declined below the 1.0920 support and tested 1.0840.
  • Gold price is consolidating above $2,000 and preparing for the next move.

GBP/USD Technical Analysis

The British Pound struggled near 1.2680 against the US Dollar. The EUR/USD pair started a downside correction below the 1.2600 and 1.2560 support levels.

Looking at the 4-hour chart, the pair settled below the 1.2560 level and the 100 simple moving average (red, 4 hours). However, the bulls appeared near the 1.2450 level and the 200 simple moving average (green, 4 hours).

The pair is now consolidating and attempting a recovery wave. Immediate resistance on the upside is near the 1.2535 level. The next major resistance is near the 1.2560 level, above which the pair could start a fresh increase.

In the stated case, the pair could rise toward the 1.2620 resistance. The next key resistance is near 1.2680. On the downside, the pair might find bids near 1.2460.

The next major support is near the 1.2440 level. If there is a downside break below the 1.2440 level, the pair could test the 1.2350 support level.

Looking at EUR/USD, the pair started a major decline from 1.1090 and tested 1.0840. If there is a recovery, the pair might struggle near 1.0900.

Economic Releases

  • UK Claimant Count Change for April 2023 – Forecast -10.8K, versus 28.2K previous.
  • UK ILO Unemployment Rate for March 2023 (3M) – Forecast 3.8%, versus 3.8% previous.
  • Euro Zone Gross Domestic Product for Q1 2023 (Preliminary) (QoQ) – Forecast 0.1%, versus 0.1% previous.
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