Key Highlights
- GBP/USD started a fresh increase above the 1.4000 resistance zone.
- It broke a major contracting triangle with resistance near 1.3945 on the 4-hours chart.
- EUR/USD remained well bid above the 1.2100 support zone.
- Gold price moved into a positive zone above the $1,820 resistance.
GBP/USD Technical Analysis
After testing the 1.3800 support zone, the British Pound started a fresh increase against the US Dollar. GBP/USD broke many important hurdles near 1.3920 and 1.3940 to move into a positive zone.
Looking at the 4-hours chart, there was a break above a major contracting triangle with resistance near 1.3945. The pair settled well above the 1.4000 resistance zone, the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours).
The upward move was such that the pair even climbed above 1.4100 and 1.4120. The next major resistance on the upside is near the 1.4180 and 1.4200 levels. Any more gains could open the doors for a move towards the 1.4320 level.
On the downside, an initial support is near the 1.4120 level. The next key support is near the 1.4050 level, below which the pair could test the main 1.4000 support zone (the previous resistance).
Overall, GBP/USD rallied steadily above the 1.4000 and 1.4100 levels. Therefore, there are chances of more gains towards 1.4200 or even 1.4250. Looking at EUR/USD, the pair is trading nicely and well above the 1.2100 support zone.
Economic Releases
- German ZEW Business Economic Sentiment Index for May 2021 – Forecast 71.0, versus 70.7 previous.
- BoE’s Governor Bailey speech.
