Key Highlights
- GBP/USD is currently consolidating above the 1.3000 support zone.
- There was a break above a contracting triangle with resistance near 1.3100 on the 4-hours chart.
- EUR/USD is showing positive signs above the 1.1800 support.
- Gold price is recovering and it could again rally if it clears $1,990 and $2,000.
GBP/USD Technical Analysis
This past week, the British Pound corrected lower from the 1.3185 resistance against the US Dollar. However, GBP/USD remained well bid above 1.3000 and it is currently rising steadily.
Looking at the 4-hours chart, the pair climbed higher from the 1.3005 swing low. It traded above the 50% Fib retracement level of the downward move from the 1.3185 high to 1.3005 low.
Moreover, there was a break above a contracting triangle with resistance near 1.3100. The pair is clearly trading nicely above the 1.3050 level and the 100 simple moving average (red, 4-hours). On the upside, an initial resistance is near the 1.3150 level.
The main resistance is near the 1.3180 range high. A successful break above the 1.3180 and 1.3200 resistance levels could open the doors for more upsides towards the 1.3250 and 1.3280 levels in the near term.
On the downside, there are many supports, starting with 1.3050. The first major support is near the 1.3030 level and 100 simple moving average (red, 4-hours). The main support is near the 1.3000 level, below which EUR/USD could decline sharply towards the 1.2840 support.
Overall, GBP/USD is likely to accelerate higher if it clears the 1.3200 resistance. Similarly, EUR/USD must break the 1.1920 resistance for more upsides in the near term.
Upcoming Economic Releases
- US Housing Starts July 2020 (MoM) – Forecast 1.169M, versus 1.186M previous.
- US Building Permits July 2020 (MoM) – Forecast 1.290M, versus 1.258M previous.
