Key Highlights
- GBP/USD started a decent increase and climbed above 1.2600.
- A key bullish trend line is forming with support at 1.2580 on the 4-hour chart.
- Gold prices cleared the $2,375 resistance to move into a positive zone.
- USD/JPY dipped again and traded below the 155.00 level.
EUR/USD Technical Analysis
The British Pound started a decent increase above the 1.2550 resistance against the US Dollar. GBP/USD cleared the 1.2600 resistance to move into a positive zone.
Looking at the 4-hour chart, the pair even settled above the 100 simple moving average (red, 4-hour) and tested the 200 simple moving average (green, 4-hour). There was a move toward the 1.2700 level.
A high was formed at 1.2700 and the pair is now consolidating gains. The first major resistance is near 1.2720. A clear move above the 1.2720 resistance might send it toward the 1.2750 level. Any more gains might call for a move toward the 1.2880 level in the near term.
Conversely, GBP/USD might correct gains. Immediate support is near the 1.2665 level. The first major support is near the 1.2620 level. The next major support is at 1.2600.
There is also a key bullish trend line forming with support at 1.2580 on the same chart. If there is a downside break below the 1.2580 support, the pair might test 1.2535 or the 100 simple moving average (red, 4-hour). Any more losses might send the pair toward 1.2450.
Looking at Gold, the bulls came into action and they were able to push prices toward the $2,400 resistance zone.
Economic Releases
- US Initial Jobless Claims – Forecast 220K, versus 231K previous.
- US Industrial Production for April 2024 (MoM) – Forecast 0.1%, versus 0.4% previous.
