Key Highlights
- GBP/USD started a fresh increase above the 1.3420 resistance.
- A bullish trend line is forming with support at 1.3370 on the 4-hour chart.
- Gold started a consolidation phase below the $4,000 pivot level.
- EUR/USD recovered and climbed above 1.1240.
GBP/USD Technical Analysis
The British Pound found support above 1.3250 against the US Dollar. GBP/USD started a fresh increase and was able to clear the 1.3320 resistance.
Looking at the 4-hour chart, the pair settled above 1.3400, the 100 simple moving average (red, 4-hour), and the 200 simple moving average (green, 4-hour). The bulls even pushed the pair above the 1.3420 resistance zone.
A high was formed at 1.3474, and the pair is now consolidating gains. If there is a correction, it might find support near the 23.6% Fib retracement level of the upward move from the 1.3273 swing low to the 1.3474 high at 1.3425.
The first major support could be 1.3380. There is also a bullish trend line forming with support at 1.3370. A close below 1.3370 might accelerate the decline. In the stated case, the pair might drop to 1.3320. The main support could be 1.320, below which the bears may gain strength for a sustained downward move.
On the upside, the first major resistance might be 1.3480. A close above 1.3480 could start a steady increase. In the stated case, the pair might even surpass 1.3520.
Looking at EUR/USD, there was a sharp recovery wave, and the pair could now attempt to clear the 1.1280 resistance.
Upcoming Key Economic Events:
- US ADP Employment Change for Oct 2026 – Forecast 59K, versus 90K previous.
- US ISM Manufacturing PMI for Oct 2026 – Forecast 54.8, versus 54.9 previous.
