Key Highlights
- GBP/USD is slowly moving higher toward the 1.2500 resistance.
- A key bullish trend line is forming with support near 1.2380 on the 4-hour chart.
- EUR/USD is still trading well below the 1.0780 resistance.
- Gold price is facing strong resistance near $1,975.
GBP/USD Technical Analysis
The British Pound failed to clear the 1.2550 resistance and declined against the US Dollar. GBP/USD is again rising and trading above the 1.2400 level.
Looking at the 4-hour chart, the pair traded is slowly moving higher above the 100 simple moving average (red, 4 hours). There was a move above the 1.2400 resistance zone.
However, the pair is now approaching a few hurdles, starting with the 50% Fib retracement level of the downward move from the 1.2544 swing high to the 1.2368 low. The first major resistance is near the 1.2480 level and the 200 simple moving average (green, 4 hours).
It is near the 61.8% Fib retracement level of the downward move from the 1.2544 swing high to the 1.2368 low. The main resistance is near 1.2500, above which the pair might rise steadily.
If there is no wave above 1.2500, the pair could dip toward 1.2380. The next major support is near the 1.2350 level. If there is a downside break below the 1.2350 support, the pair could decline toward the 1.2300 support.
Looking at EUR/USD, the pair is slowly moving higher but there is strong resistance waiting near the 1.0780 level.
Economic Releases
- Euro Zone Retail Sales for April 2023 (YoY) – Forecast -1.8%, versus -3.8% previous.
