Key Highlights
- GBP/USD climbed higher above the 1.2780 resistance zone.
- The pair is signaling a strong bullish momentum above 1.2800 on the 4-hour chart.
- Oil prices corrected lower from the $84.65 zone.
- Bitcoin is struggling to start a recovery wave above $60,000.
GBP/USD Technical Analysis
The British Pound formed a base above the 1.2620 level against the US Dollar. GBP/USD started a steady increase above the 1.2700 resistance level.
Looking at the 4-hour chart, the pair was able to clear the 1.2780 resistance zone. There was a close above the 100 simple moving average (red, 4-hour) and the 200 simple moving average (green, 4-hour).
The pair even surpassed the 76.4% Fib retracement level of the downward move from the 1.2860 swing high to the 1.2612 low. It is showing signs of strength above the 1.2800 level. On the upside, the pair is facing resistance near the 1.2860 level.
The next resistance sits at 1.2880. The main hurdle sits at 1.2920. A clear move above the 1.2920 resistance might send it toward the 1.2965 level. Any more gains might open the doors for a test of the 1.3000 zone in the coming days.
Immediate support is near the 1.2800 level. The next major support is near the 1.2780 level. A downside break and close below the 1.2780 support zone could open the doors for more losses. In the stated case, the pair could decline toward the 1.2720 level and the 200 simple moving average (green, 4-hour).
Looking at Bitcoin, there were a couple of recovery attempts, but the bulls were unable to push the price above the $60,000 resistance zone.
Economic Releases
- Federal Reserve Chair Jerome Powell testifies before Congress.
