GBP/USD Faces Uphill Task, Bitcoin Surges 15%

Key Highlights

• GBP/USD is attempting a recovery wave above the 1.2200 resistance.
• It broke a major contracting triangle with resistance near 1.2185 on the 4-hour chart.
• Bitcoin price rallied over 15% and tested the $35,000 resistance.
• The UK Manufacturing PMI could increase slightly from 44.3 to 45.0 in Oct 2023.

GBP/USD Technical Analysis

The British Pound started a recovery wave above 1.2120 against the US dollar. GBP/USD gained pace above 1.2150 to move into a short-term positive zone.

Looking at the 4-hour chart, the pair managed to surpass the 1.2200 resistance zone and the 100 simple moving average (red, 4 hours). It also broke a major contracting triangle with resistance near 1.2185.

The pair is now facing hurdles near the 1.2270 level and the 200 simple moving average (green, 4 hours). It is close to the 76.4% Fib retracement level of the downward move from the 1.2337 swing high to the 1.2089 low.

If there is a clear move above 1.2270, the pair could rise toward the 1.2340 resistance. The next key resistance is near 1.2400, above which the pair could rise toward the 1.2450 level.

If there is a fresh decline, the pair might find bids near 1.2220. The next key support is seen near the 1.2200 level, below which it could test the 100 simple moving average (red, 4 hours) at 1.2185. Any more losses might send the pair toward the 1.2120 level.

Looking at Bitcoin, there was a strong increase, and the price was able to clear many hurdles near the $32,000 and $34,200 levels.

Economic Releases

• Germany’s Manufacturing PMI for Oct 2023 (Preliminary) – Forecast 40.0, versus 39.6 previous.
• Germany’s Services PMI for Oct 2023 (Preliminary) – Forecast 50.0, versus 50.3 previous.
• Euro Zone Manufacturing PMI for Oct 2023 (Preliminary) – Forecast 43.7, versus 43.4 previous.
• Euro Zone Services PMI for Oct 2023 (Preliminary) – Forecast 48.7, versus 48.7 previous.
• UK Manufacturing PMI for Oct 2023 (Preliminary) – Forecast 45.0, versus 44.3 previous.
• UK Services PMI for Oct 2023 (Preliminary) – Forecast 49.5, versus 49.3 previous.
• US Manufacturing PMI for Oct 2023 (Preliminary) – Forecast 49.5, versus 49.8 previous.
• US Services PMI for Oct 2023 (Preliminary) – Forecast 49.9, versus 50.1 previous.