Key Highlights
- GBP/USD started a fresh increase above the 1.3500 resistance zone.
- A connecting bullish trend line is forming with support at 1.3530 on the 4-hour chart.
- EUR/USD is now gaining pace and might clear the 1.1450 resistance zone.
- USD/JPY extended losses and traded below the 143.50 level.
GBP/USD Technical Analysis
The British Pound formed a base above 1.3350 and started a fresh increase against the US Dollar. EUR/USD cleared the 1.3450 resistance to enter a positive zone.
Looking at the 4-hour chart, the pair traded settled above the 1.350 level, the 100 simple moving average (red, 4-hour), and the 200 simple moving average (green, 4-hour).
The bulls pushed the pair above the 1.3550. On the upside, the pair could face resistance near the 1.3580 level. The next key resistance sits near the 1.3620 level. The first major resistance sits at 1.3650. A close above the 1.3650 level could set the pace for another increase.
In the stated case, the pair could even clear the 1.3800 resistance. The next major stop for the bulls could be near the 1.4000 resistance.
On the downside, immediate support sits near the 1.3530 level. There is also a connecting bullish trend line forming with support at 1.3530 on the same chart. The next key support sits near 1.3480. Any more losses could send the pair toward the 1.3400 pivot level in the near term. The main support could be near 1.3350.
Looking at EUR/USD, the pair started another increase, but the bulls seem to be facing hurdles near the 1.1450 level.
Upcoming Economic Events:
- US Initial Jobless Claims – Forecast 235K, versus 240K previous.
- US Goods and Services Trade Balance for April 2025 – Forecast $-94.0B, versus $-140.5B previous.
