Key Highlights
- GBP/USD is aiming for more gains above 1.2750.
- A key bullish trend line is forming with support at 1.2600 on the 4-hour chart.
- Gold prices are accelerating higher above the $2,025 resistance.
- The US GDP could grow 5% in Q3 2023 (Preliminary), up from 4.9%.
GBP/USD Technical Analysis
The British Pound started a major increase above the 1.2450 level against the US dollar. GBP/USD even climbed above the 1.2550 level to enter a positive zone.
Looking at the 4-hour chart, the pair settled above the 1.2600 level, the 100 simple moving average (red, 4 hours), and the 200 simple moving average (green, 4 hours).
It even tested the 1.2730 resistance before there was a consolidation phase. On the upside, immediate resistance is near the 1.2730 level. The next key resistance is near the 1.2750 level. A close above the 1.2750 zone could open the doors for more upsides. The next stop for the bulls might be 1.2800.
If there is a downside correction, the pair might find support near the 1.2665 zone. There is also a key bullish trend line forming with support at 1.2600 on the same chart.
The trend line is close to the 50% Fib retracement level of the upward move from the 1.2449 swing low to the 1.2732 high. If there is a downside break below the trend line, the pair could decline toward the 1.2550 support.
The 61.8% Fib retracement level of the upward move from the 1.2449 swing low to the 1.2732 high is also near 1.2550. The next key support sits at 1.2450, below which the pair could test the 1.2420 pivot level in the near term.
Looking at Gold, there were strong bullish moves above $2,025 and there could be more upsides toward $2,050 in the coming sessions.
Economic Releases
US Goods Trade Balance for Oct 2023 – Forecast $-85.5B, versus $-86.3B previous.
US Gross Domestic Product for Q3 2023 (Preliminary) – Forecast 5.0% versus previous 4.9%.
