Key Highlights
- GBP/USD is consolidating above the 1.2380 support.
- A major bullish trend line is forming with support near 1.2395 on the 4-hour chart.
- EUR/USD is moving higher and stable above the 1.0950 support.
- Gold price is showing a few bearish signs below the $2,000 level.
GBP/USD Technical Analysis
The British Pound started a downside correction from the 1.2550 zone against the US Dollar. GBP/USD declined below 1.2450 but downsides were limited.
Looking at the 4-hour chart, the pair tested the 1.2350 support zone. A low was formed near 1.2353 before the price started a fresh increase. The pair climbed above the 1.2420 level and the 100 simple moving average (red, 4 hours).
It is also trading well above the 200 simple moving average (green, 4 hours). Recently, there were a few spikes above the 50% Fib retracement level of the downward move from the 1.2546 swing high to the 1.2353 low.
The first major resistance is near the 1.2475 level. It coincides with the 61.8% Fib retracement level of the downward move from the 1.2546 swing high to the 1.2353 low.
A clear upside break and close above the 1.2745 resistance might send the pair toward 1.2520 or 1.2550. The next key resistance is near the 1.2620 zone. Any more gains might send the pair toward 1.2650.
On the downside, there is a major support forming near 1.2400. There is also a major bullish trend line forming with support near 1.2395 on the same chart. The next major support sits near the 1.2350 level, below which the pair might accelerate lower.
Looking at EUR/USD, the pair remained stable above 1.0950 and might soon attempt an upside break above the 1.1100 resistance.
Economic Releases
- US House Price Index for Feb 2023 (MoM) – Forecast -0.2%, versus +0.2% previous.
- US New Home Sales for March 2023 (MoM) – Forecast +1.1% versus +1.1% previous.
