Key Highlights
- GBP/USD started a decent increase from the 1.3250 zone.
- It cleared a key bearish trend line with resistance at 1.3340 on the 4-hour chart.
- EUR/USD started a recovery wave above the 1.1220 level.
- USD/JPY is showing a few bearish signs below 146.20.
GBP/USD Technical Analysis
The British Pound remained support near 1.3250 against the US Dollar. GBP/USD formed a base and started a fresh increase above 1.3300.
Looking at the 4-hour chart, the pair surpassed a key bearish trend line with resistance at 1.3340. There was a close above the 1.3320 level, the 100 simple moving average (red, 4-hour), and the 200 simple moving average (green, 4-hour).
The pair even tested the 1.3400 zone. On the upside, the pair could face resistance near the 1.3400 level. The next key resistance sits near the 1.3420 level. The first major resistance sits at 1.3450.
A close above the 1.3450 level could set the pace 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 resistance.
On the downside, immediate support sits near the 1.3320 level. The next key support sits near 1.3300 and the 100 simple moving average (red, 4-hour). Any more losses could send the pair toward the 1.3250 pivot level in the near term. The mains support could be near 1.3200 and the 200 simple moving average (green, 4-hour).
Looking at EUR/USD, the pair managed to avoid more losses and started a recovery wave above the 1.1220 level.
Upcoming Economic Events:
- Fed’s Bostic speech.
- Fed’s Daly speech.
- Fed’s Hammack speech.
