Key Highlights
- GBP/USD started a recovery wave above 1.3120.
- A major bearish trend line is forming with resistance at 1.3200 on the 4-hour chart.
- EUR/USD recovered some losses and climbed above 1.1550.
- Bitcoin struggled to clear the $107,500 resistance zone.
GBP/USD Technical Analysis
The British Pound found support near 1.3000 against the US Dollar. GBP/USD started a recovery wave above 1.3080 and 1.3100.
Looking at the 4-hour chart, the pair traded above the 1.3120 level, and the 23.6% Fib retracement level of the downward move from the 1.3471 swing high to the 1.3009 low. However, the bulls now face a tough task.
On the upside, the pair faces resistance near the 1.3180 zone. The first key hurdle sits at 1.3200. There is also a major bearish trend line forming with resistance at 1.3200 and the 100 simple moving average (red, 4-hour).
A close above the trend line might send GBP/USD toward the 50% Fib retracement level of the downward move from the 1.3471 swing high to the 1.3009 low at 1.3240.
The next resistance could be the 200 simple moving average (green, 4-hour) at 1.3310. Any more gains could set the pace for a steady increase toward 1.3400.
On the downside, the pair might find support at 1.3100. The main support might be 1.3050. A close below the 1.3050 zone could start a pullback toward. Any more losses might open the doors for a test of 1.3000.
Looking at EUR/USD, the pair started a recovery wave above 1.1550 but faces hurdles near the 1.1620 level.
Upcoming Key Economic Events:
- Fed’s Williams speech.
- Fed’s Paulson speech.
- Fed’s Waller speech.
- Fed’s Bostic speech.
