Key Highlights
- GBP/USD found support near 1.3250 and started a fresh increase.
- It cleared a key bearish trend line with resistance at 1.3300 on the 4-hour chart.
- EUR/USD is consolidating above the 1.1250 support zone.
- The Fed will announce interest rates later today (forecast 4.5%, versus 4.5% previous).
GBP/USD Technical Analysis
The British Pound corrected gains from 1.3445 and tested 1.3250 against the US Dollar. GBP/USD is again rising and aims for a move to a new multi-month high.
Looking at the 4-hour chart, the pair remained well bid above the 1.3250 level, the 100 simple moving average (red, 4-hour), and the 200 simple moving average (green, 4-hour). There was a clear move above the 50% Fib retracement level of the downward move from the 1.3443 swing high to the 1.3251 low.
Besides, it cleared a key bearish trend line with resistance at 1.3300 on the same chart. The pair is now facing resistance near the 1.3420 level. The next major resistance is near the 1.3450 zone.
A close above the 1.3450 level could set the tone for another increase. In the stated case, the pair could even clear the 1.3500 resistance. The next major stop for the bulls could be near the 1.3620 level.
On the downside, immediate support sits near the 1.3300 level and the 100 simple moving average (red, 4-hour). The next key support sits near the 1.3250 level. Any more losses could send the pair toward the 1.3120 level.
Looking at EUR/USD, the pair started a consolidation phase above 1.1250 and might struggle to clear the 1.1420 resistance.
Upcoming Economic Events:
- Fed Interest Rate Decision – Forecast 4.5%, versus 4.5% previous.
