Key Highlights
- GBP/USD started a recovery wave from the 1.2100 zone.
- A major bearish trend line is forming with resistance at 1.2400 on the 4-hour chart.
- EUR/USD extended its recovery above the 1.0400 resistance.
- Gold rallied and broke the $2,750 resistance zone.
GBP/USD Technical Analysis
The British Pound found support at 1.2100 and recovered some losses against the US Dollar. GBP/USD climbed above 1.2150 and now attempts more gains.
Looking at the 4-hour chart, the pair was able to clear the 50% Fib retracement level of the downward move from the 1.2575 swing high to the 1.2099 low. It tested the 100 simple moving average (red, 4-hour) and remained well below the 200 simple moving average (green, 4-hour).
On the upside, the pair seems to be facing hurdles near the 1.2390 level. It is close to the 61.8% Fib retracement level of the downward move from the 1.2575 swing high to the 1.2099 low.
There is also a major bearish trend line forming with resistance at 1.2400 on the same chart. The next major resistance is near the 1.2440 level. A close above the 1.2440 level could set the tone for another increase.
In the stated case, the pair could even clear the 200 simple moving average (green, 4-hour) and rise toward the 1.2550 resistance. The main hurdle could be 1.2620.
On the downside, immediate support sits near the 1.2250 level. The next key support sits near the 1.2220 level. Any more losses could send the pair toward the 1.2150 level.
Looking at EUR/USD, the pair started a short-term recovery wave and there was a clear move above the 1.0400 resistance zone.
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