Key Highlights
- GBP/USD started a downside correction from the 1.3540 resistance zone.
- There was a break below a major bullish trend line at 1.3340 on the 4-hours chart.
- EUR/USD remained well bid above 1.2100 and started a fresh increase.
- Gold price broke the key resistance near $1,850 and gained bullish momentum.
GBP/USD Technical Analysis
In the past few days, there was a steady rise in the British Pound above 1.3320 resistance against the US Dollar. GBP/USD even broke the key 1.3400 resistance area and climbed above 1.3500 before facing hurdles.
Looking at the 4-hours chart, the pair traded as high as 1.3538 and it settled well above the 200 simple moving average (green, 4-hours). Recently, there was a downside correction below the 1.3500 and 1.3440 support levels.
There was even a break below a major bullish trend line with support at 1.3340 on the same chart. The pair spiked below 1.3300 and the 100 simple moving average (red, 4-hours). The pair traded as low as 1.3225 and it remains at a risk of more losses.
The next major support is near the 1.3180 level, below which the pair could test 1.3120. Conversely, the pair could start a fresh increase above the 1.3380 and 1.3400 resistance levels. The next major resistance at 1.3440 and 1.3445.
Looking at EUR/USD, the pair climbed higher nicely after retesting the 1.2080 support area. More importantly, gold price started a strong rise above the $1,850 resistance zone.
Upcoming Economic Releases
- Euro Zone Gross Domestic Product Q3 2020 (QoQ) – Forecast 12.6%, versus 12.6% previous.
- Euro Zone Gross Domestic Product Q3 2020 (YoY) – Forecast -4.4%, versus -4.4% previous.
- German ZEW Business Economic Sentiment Index for Dec 2020 – Forecast 46, versus 39 previous.
