Key Highlights
- GBP/USD is recovering higher from the 1.2300 support.
- It broke a connecting bearish trend line with resistance at 1.2420 on the 4-hour chart.
- EUR/USD is consolidating and aiming for a move above 1.0750.
- Crude oil prices found support near the $81.50 zone.
GBP/USD Technical Analysis
The British Pound extended losses and traded below the 1.2450 support against the US Dollar. GBP/USD tested the 1.2300 zone and recently started a recovery wave.
Looking at the 4-hour chart, the pair traded as low as 1.2299 and settled well below the 100 simple moving average (red, 4-hour) and the 200 simple moving average (green, 4-hour).
It is now recovering higher above 1.2380. GBP/USD surpassed the 23.6% Fib retracement level of the downward move from the 1.2708 swing high to the 1.2299 low. It also broke a connecting bearish trend line with resistance at 1.2420 on the same chart.
Immediate resistance is near the 1.2450 level. The first key resistance is near the 1.2500 zone. It is close to the 50% Fib retracement level of the downward move from the 1.2708 swing high to the 1.2299 low and the 100 simple moving average (red, 4-hour).
A clear move above the 1.2500 resistance could send the pair further higher. In the stated case, GBP/USD bulls could even aim for a move toward 1.2650.
Immediate support is near the 1.2400 level. The next major support is at 1.2380. If there is a downside break below the 1.2380 support, the pair might test 1.2350. The main support is now forming at 1.2300. Any more losses might send the pair toward 1.2120.
Looking at Oil, the price extended losses before it found support near $81.50 and recently started an upside correction.
Economic Releases
- US Durable Goods Orders for March 2024 – Forecast +1.5% versus +1.4% previous.
- US Durable Goods Orders ex Defense for March 2024 – Forecast +2.5% versus +2.2% previous.
