Key Highlights
- GBP/USD started a fresh increase above the 1.1350 resistance.
- It is facing a major bearish trend line with resistance near 1.1515 on the 4-hours chart.
- EUR/USD surged above 0.9900 and might continue to rise.
- Crude oil price might extend gains above the $94 and $95 resistance levels.
GBP/USD Technical Analysis
The British Pound remained well bid above the 1.1120 level against the US Dollar. GBP/USD started a fresh increase above the 1.1250 and 1.1350 resistance levels.
Looking at the 4-hours chart, the pair gained pace after it settled above the 1.1350 level. It even closed above the 1.1400 level, the 100 simple moving average (red, 4-hours) plus the 200 simple moving average (green, 4-hours).
The bulls pushed the pair above the 50% Fib retracement level of the downward move from the 1.1645 swing high to 1.1145 low. It is now facing resistance near the 1.1520 level.
There is also a major bearish trend line with resistance near 1.1515 on the same chart. It is near the 61.8% Fib retracement level of the downward move from the 1.1645 swing high to 1.1145 low.
The next major resistance may perhaps be near 1.1640. Any more gains could set the pace for a move towards the 1.1720 level, above which it could even test 1.1800.
An initial support is near the 1.1400 level and the 100 simple moving average (red, 4-hours). The next major support is near the 1.1350 zone. The main support sits at 1.1250 zone or the 200 simple moving average (green, 4-hours).
A close below the 1.1250 level and the 200 simple moving average (green, 4-hours) could increase selling pressure. In the stated case, it could decline towards the 1.0050 support.
Looking at EUR/USD, the pair also started a steady increase above the 0.9900 resistance and might continue to rise in the near term.
Economic Releases
- Euro Zone Retail Sales for Sep 2022 (YoY) – Forecast -1.3%, versus -2.0% previous.
- Euro Zone Retail Sales for Sep 2022 (MoM) – Forecast +0.3%, versus -0.3% previous.
