Key Highlights
- GBP/USD started a consolidation phase above the 1.2320 zone.
- A key rising channel is forming with support at 1.2340 on the 4-hour chart.
- EUR/USD could struggle to gain momentum above the 1.0365 resistance.
- Gold prices surged to a record high and cleared the $2,900 level.
GBP/USD Technical Analysis
The British Pound started a fresh increase above 1.2320 against the US Dollar. GBP/USD tested the 1.2550 level before there was a downside correction.
Looking at the 4-hour chart, the pair corrected gains and traded below the 1.2480 level. The pair even declined below the 50% Fib retracement level of the upward move from the 1.2249 swing low to the 1.2548 high.
The pair is now consolidating above the 1.2340 level and near the 100 simple moving average (red, 4-hour), and the 200 simple moving average (green, 4-hour).
On the downside, immediate support sits near the 1.2360 level. It is near the 61.8% Fib retracement level of the upward move from the 1.2249 swing low to the 1.2548 high. The next key support sits near the 1.2320 level. Any more losses could send the pair toward the 1.2250 level.
On the upside, the pair seems to be facing hurdles near the 1.2450 level. The next major resistance is near the 1.2500 level. The main resistance is now forming near the 1.2550 zone.
A close above the 1.2550 level could set the tone for another increase. In the stated case, the pair could even clear the 1.2600 resistance.
Looking at EUR/USD, the pair remained stable, but the bears are likely to remain active near the 1.0365 resistance zone.
Upcoming Economic Events:
- BoE’s Governor Bailey speech.
- Fed’s Chair Powell testifies.
