Key Highlights
- GBP/USD started a downside correction from the 1.3635 resistance zone.
- Earlier, it surpassed a major bearish trend line at 1.3525 on the 4-hours chart.
- EUR/USD is consolidating gains below the 1.1480 resistance.
- Gold price could gain pace if it clears the $1,825 resistance.
GBP/USD Technical Analysis
The British Pound started a decent increase from the 1.3360 zone against the US Dollar. GBP/USD climbed above the 1.3450 and 1.3500 resistance levels to move into a positive zone.
Looking at the 4-hours chart, the pair was able to settle above the 1.3500 level and surpassed the 100 simple moving average (red, 4-hours). The pair also climbed above the 50% Fib retracement level of the key decline from the 1.3748 high to 1.3357 low.
Besides, there was a break above a major bearish trend line at 1.3525 on the same chart. However, the pair struggled to gain pace above the 1.3620 and 1.3635 levels.
It faced sellers near the 61.8% Fib retracement level of the key decline from the 1.3748 high to 1.3357 low. GBP/USD corrected gains and traded below 1.3550. An initial support is near the 1.3480 level.
The next major support is near the 1.3450 level. If there is a downside break below the 1.3450 support, the pair could decline towards the 1.3360 support zone. On the upside, an immediate resistance is near the 1.3550 level.
The first major resistance is near the 1.3620 zone. A clear move above the 1.3620 level might start a major increase in the coming sessions.
Looking at EUR/USD, the pair surged above the 1.1420 and 1.1450 levels. It is now consolidating gains and facing resistance near the 1.1480 level.
Economic Releases
- US Goods and Services Trade Balance for Dec 2021 – Forecast $-83.0B, versus $-80.2B previous.
