Key Highlights
- GBP/USD remained in a bullish zone above the 1.2600 support.
- A key bullish trend line is forming with support at 1.2550 on the 4-hour chart.
- EUR/USD could gain pace if it clears the 1.0535 resistance.
- The US GDP could grow by 2.3% in Q4 2025 (Preliminary).
GBP/USD Technical Analysis
The British Pound started a decent increase above 1.2550 against the US Dollar. GBP/USD even cleared the 1.2620 resistance before it started a consolidation phase.
Looking at the 4-hour chart, the pair settled above the 1.2600 support, the 100 simple moving average (red, 4-hour), and the 200 simple moving average (green, 4-hour). There was a minor pullback from the 1.2690 high, but the pair remained supported.
On the downside, immediate support sits near the 1.2620 level. The next key support sits near the 1.2600 level. The first major support is near the 1.2550 level and the 100 simple moving average (red, 4-hour.
There is also a key bullish trend line forming with support at 1.2550 on the same chart. Any more losses could send the pair toward the 1.2465 level.
On the upside, the pair seems to be facing hurdles near the 1.2690 level. The next major resistance is near the 1.2720 level. The main resistance is now forming near the 1.2750 zone. A close above the 1.2750 level could set the tone for another increase. In the stated case, the pair could even clear the 1.2800 resistance.
Looking at EUR/USD, the pair remained stable above 1.0450 and might aim for more gains above the 1.0535 resistance.
Upcoming Economic Events:
- US Gross Domestic Product for Q4 2025 (Preliminary) – Forecast 2.3% versus previous 2.3%.
- US Initial Jobless Claims – Forecast 221K, versus 219K previous.
- US Durable Goods Orders for Jan 2025 – Forecast +2% versus -2.2% previous.
