Key Highlights
- GBP/USD started an upside correction from the 1.2500 support.
- It cleared a key contracting triangle with resistance at 1.2600 on the 4-hour chart.
- Bitcoin tested the $91,000 zone before the bulls appeared.
- USD/JPY declined heavily below the 153.50 and 152.00 support levels.
GBP/USD Technical Analysis
The British Pound found support near 1.2500 against the US Dollar. GBP/USD formed a base and recently started a recovery wave above 1.2550.
Looking at the 4-hour chart, the pair cleared a key contracting triangle with resistance at 1.2600. The pair climbed above the 23.6% Fib retracement level of the downward move from the 1.3047 swing high to the 1.2487 low.
However, the pair is still well below the 100 simple moving average (red, 4-hour) and the 200 simple moving average (green, 4-hour). On the upside, the pair could face resistance near the 1.2700 level.
The first major resistance is near the 1.2750 level or the 50% Fib retracement level of the downward move from the 1.3047 swing high to the 1.2487 low. A close above the 1.2750 level could set the tone for another increase.
The next major resistance could be 1.2835, above which the price could climb higher toward the 1.2950 resistance. Any more gains might send GBP/USD toward 1.3000.
On the downside, immediate support sits near the 1.2600 level. The next key support sits near the 1.2550 level. Any more losses could send the pair toward the 1.2500 level.
Looking at Bitcoin, the price extended its downside correction and tested the $91,000 zone where the bulls emerged.
Upcoming Economic Events:
- German Consumer Price Index for Nov 2024 (YoY) (Prelim) – Forecast +2.2%, versus +2.4% previous.
- German Consumer Price Index for Nov 2024 (MoM) (Prelim) – Forecast -0.2%, versus +0.4% previous.
