Key Highlights
- GBP/USD was able to surpass a crucial resistance near the 1.3750 zone.
- There are major supports forming near 1.3650 and 1.3600 on the 4-hours chart.
- EUR/USD is facing a strong resistance near 1.2080 and 1.2100.
- Gold price started an upside correction from $1,784 and traded above $1,830.
GBP/USD Technical Analysis
The British Pound made another attempt to clear the 1.3750 resistance against the US Dollar. Finally, GBP/USD was able to gain strength to clear the 1.3740 and 1.3750 resistance levels.
Looking at the 4-hours chart, there was clearly a major resistance formed near the 1.3750 level. Earlier, there was a minor downside correction from the 1.3740 swing high. The pair traded below the 1.3700 level.
There was a break below the 23.6% Fib retracement level of the upward move from the 1.3564 low to 1.3740 swing high. The pair remained well bid above the 1.3670 level or the 100 simple moving average (red, 4-hours).
There is also a strong support forming near the 1.3650 level. Any more losses could lead the pair towards the main 1.3600 support zone.
On the upside, the pair is now trading above the 1.3740 and 1.3750 resistance levels. If it remains stable above 1.3750, there are high chances of more gains towards the 1.3800 and 1.3840 levels.
Overall, GBP/USD is showing a few positive signs above the 1.3750 resistance zone. Conversely, EUR/USD is trading in a negative zone and facing a major hurdle at 1.2100.
Economic Releases
- US NFIB Business Optimism Index Jan 2021 – Forecast 98.7, versus 95.9 previous.
