Key Highlights
- GBP/USD recovered and surpassed the 1.2200 resistance.
- EUR/USD might extend gains and revisit 1.0800.
- The UK Claimant count could change -12.4K in Feb 2023.
- The US CPI could drop from 6.4 to 6.0% in Feb 2023 (YoY).
GBP/USD Technical Analysis
The British Pound started a strong increase from the 1.1800 zone against the US Dollar. GBP/USD broke a major hurdle near 1.1920 to move into a positive zone.
Looking at the 4-hours chart, the pair gained pace above the 1.2000 resistance and the 100 simple moving average (red, 4-hours). Besides, the pair broke a key bearish trend line with resistance near 1.2000.
The bulls even pumped the pair above the 1.2100 level and the 200 simple moving average (green, 4-hours). The pair is now trading above the 1.2120 level.
An immediate resistance is near the 1.2185 level. The next major resistance is near the 1.2220 level. It is near the 1.618 Fib extension level of the downward move from the 1.2065 swing high to 1.1802 low.
A clear move above the 1.2220 resistance might start another increase towards the 1.2320 zone. Any more gains might send the pair towards 1.2400.
On the downside, an immediate support is near the 1.2065. The next major support is near the 1.2000 level and the 100 simple moving average (red, 4-hours), below which there is a risk of a move towards the 1.1920 level.
Looking at EUR/USD, the pair is showing positive signs above the 1.0650 level and there could be more upsides towards the 1.0800 level.
Economic Releases
- UK Claimant Count Change for Feb 2023 – Forecast -12.4K, versus -12.9K previous.
- UK ILO Unemployment Rate for Jan 2023 (3M) – Forecast 3.8%, versus 3.7% previous.
- US Consumer Price Index for Feb 2023 (MoM) – Forecast +0.4%, versus +0.5% previous.
- US Consumer Price Index for Feb 2023 (YoY) – Forecast +6.0%, versus +6.4% previous.
