Key Highlights
- GBP/USD struggled again to clear the 1.3600-1.3620 resistance zone.
- There was a break below a key bullish trend line at 1.3550 on the 4-hours chart.
- EUR/USD retested 1.2250 and it is holding gains above 1.2180.
- Crude oil price found support near $46.50 and it is gaining pace above $48.00.
GBP/USD Technical Analysis
This past week, the British Pound started a fresh increase above 1.3300 against the US Dollar. GBP/USD even cleared the 1.3500 resistance zone, but it failed to gain strength above 1.3600.
Looking at the 4-hours chart, the pair traded as high as 1.3618 and settled well above the 100 simple moving average (red, 4-hours) and the 200 simple moving average (green, 4-hours).
Recently, there was a downside correction below the 1.3560 support level. There was also a break below a key bullish trend line at 1.3550 on the same chart. The pair spiked below the 38.2% Fib retracement level of the upward move from the 1.3304 swing low to 1.3618 high.
An initial support on the downside is near the 1.3460 level. It is close to a key multi-touch zone and also coincides with the 50% Fib retracement level of the upward move from the 1.3304 swing low to 1.3618 high.
Any more losses could lead the pair towards the 1.3420 support and the 100 SMA. On the upside, an initial resistance is near the 1.3560 level. The main resistance is near the 1.3600-1.3620 zone. A close above the 1.3620 level is must for upside continuation.
Looking at EUR/USD, the pair gained strength above 1.2220 and it is showing positive signs above 1.2180. More importantly, crude oil price is again rising and it seems like the bulls are likely to aim a test of the $50.00 level.
Economic Releases
- S&P/Case-Shiller Home Price Indices for Oct 2020 (YoY) – Forecast +6.9%, versus +6.6% previous.
