Key Highlights
- GBP/USD is facing a strong resistance near the 1.2450 zone.
- A key bullish trend line is forming with support near 1.2350 on the 4-hours chart.
- EUR/USD could correct lower if it stays below 1.0920 for a long time.
- Crude oil price corrected lower from the $82.40 resistance zone.
GBP/USD Technical Analysis
The British Pound seems to be facing a strong resistance near 1.2450 against the US Dollar. GBP/USD traded as high as 1.2447 before starting a consolidation phase.
Looking at the 4-hours chart, the pair slowly moved lower from the 1.2447 high. However, the pair is trading well above the 100 simple moving average (red, 4-hours) and the 200 simple moving average (green, 4-hours).
There was a drop below the 38.2% Fib retracement level of the upward move from the 1.2087 swing low to 1.2447 high. The pair tested the 1.2270 support and remained well supported.
The bulls protected the 50% Fib retracement level of the upward move from the 1.2087 swing low to 1.2447 high. There is also a key bullish trend line forming with support near 1.2350 on the same chart.
If there is a downside break, the pair might test the 1.2270 support and the 100 simple moving average (red, 4-hours). The next major support sits near the 1.2200 level and the 200 simple moving average (green, 4-hours). Any more losses might open the doors for a move towards the 1.2080 support zone.
On the upside, the pair is facing resistance near 1.2420. The first major resistance is near the 1.2450 level. A clear move above the 1.2450 resistance might start a steady increase towards the 1.2550 resistance zone.
Any more gains could open the doors for a move towards the 1.2680 level. The next key hurdle is near 1.2720, above which the pair could climb towards the 1.2850 resistance zone.
Looking at EUR/USD, the pair is consolidating above the 1.0850 zone and there is a risk of a downside correction in the near term.
Economic Releases
- German CPI for Jan 2023 (Preliminary) (YoY) – Forecast +9.2%, versus +8.6% previous.
- German CPI for Jan 2023 (Preliminary) (MoM) – Forecast +1%, versus -0.8% previous.
- Euro Zone Gross Domestic Product Q4 2022 (Preliminary) (QoQ) – Forecast 0%, versus 0.3% previous.
- Euro Zone Gross Domestic Product Q4 2022 (Preliminary) (YoY) – Forecast 1.8%, versus 2.3% previous.
