Key Highlights
- GBP/USD started a fresh increase from the 1.2904 low.
- There was a break above a bearish trend line with resistance near 1.2970 on the 4-hours chart.
- EUR/USD seems to be facing resistance near 1.1200 and 1.1220.
- The US Housing Price Index in Oct 2019 could increase 0.3% (MoM).
GBP/USD Technical Analysis
After a heavy decline, GBP/USD found support near the 1.2900 area. Later, the British Pound started a decent recovery and climbed above the 1.3000 resistance against the US Dollar.
Looking at the 4-hours chart, the pair managed to settle above 1.3000 and the 200 simple moving average (green, 4-hours). Besides, there was a break above the 23.6% Fib retracement level of the downward move from the 1.3514 high to 1.2904 low.
More importantly, there was a break above a bearish trend line with resistance near 1.2970 on the same chart. It opened the doors for more gains above the 1.3120 resistance.
However, there are many key hurdles on the upside near the 1.3200 area. Moreover, the 50% Fib retracement level of the downward move from the 1.3514 high to 1.2904 low is also near the 1.3200 area.
Therefore, the pair is likely to face a strong selling interest if it reaches the 1.3200 resistance area. On the downside, there is a strong support forming near 1.3000 and the 200 simple moving average (green, 4-hours).
If there is a bearish close below the 200 simple moving average (green, 4-hours), there is a risk of a major decline even below the 1.2900 support area.
Looking at EUR/USD, the pair is gained momentum above the 1.1150 resistance area, but it seems like the bulls are struggling near the 1.1200-1.1220 area.
Upcoming Economic Releases
- US Housing Price Index for Oct 2019 (MoM) – Forecast +0.3%, versus +0.6% previous.
- S&P/Case-Shiller Home Price Indices for Oct 2019 (YoY) – Forecast +2.2%, versus +2.1% previous.
