Key Highlights
- GBP/USD started a fresh increase above the 1.3350 resistance.
- It broke a major bearish trend line at 1.3220 on the 4-hours chart.
- EUR/USD could gain pace if it breaks the 1.1350 resistance zone.
- Crude oil price rallied further above the $73.00 hurdle.
GBP/USD Technical Analysis
The British Pound started a fresh increase from 1.3200 against the US Dollar. GBP/USD broke the 1.3280 and 1.3300 resistance levels to move into a positive zone.
Looking at the 4-hours chart, the settled above the 1.3320 level, the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours).
The pair even climbed above the 61.8% Fib retracement level of the key decline from the 1.3513 swing high to 1.3160 low. It is now consolidating near the 1.3400 zone. An immediate resistance on the upside is near the 1.3450 level.
The next major resistance is near the 1.3500 level. A clear move above 1.3480 and 1.3500 could lead the pair further higher. The next major resistance is near 1.3620.
On the downside, an immediate support is near the 1.3380 level. The next major support is also near the 1.3350. Any more losses might send the pair towards the 1.3280 level.
Looking at EUR/USD, the pair could gain pace if there is a clear break above the 1.1350 resistance zone in the coming sessions.
Economic Releases
- US Housing Price Index for Oct 2021 (MoM) – Forecast +1.2%, versus +0.9% previous.
- S&P/Case-Shiller Home Price Indices for Oct 2021 (YoY) – Forecast +18.5%, versus +19.1% previous.
