Key Highlights
- GBP/USD started a fresh increase above the 1.2920 resistance.
- It broke a major bearish trend line with resistance at 1.2765 on the 4-hour chart.
- Gold prices are consolidating gains above the $2,500 resistance.
- EUR/USD surged toward the 1.1120 level and aims for more upsides.
GBP/USD Technical Analysis
The British Pound formed a base above the 1.2750 level and started a decent increase against the US Dollar. GBP/USD cleared 1.2900 to move into a positive zone.
Looking at the 4-hour chart, the pair climbed further above 1.3000 to set a new multi-week high. The pair traded as high as 1.3052 and is currently consolidating gains. It is still above the 1.3000 zone and showing positive signs above the 23.6% Fib retracement of the upward move from the 1.2664 swing low to the 1.3052 high.
Immediate support is near the 1.3000 level. The first major support is near the 1.2960 level. A downside break below the 1.2960 level could set the pace for a larger decline.
The next major support is near the 1.2860 level or the 50% Fib retracement of the upward move from the 1.2664 swing low to the 1.3052 high. Any more losses might send the pair toward the 1.2820 support level.
On the upside, the pair could face resistance near the 1.3050 level. The first key resistance sits near the 1.3120 level. A clear move above the 1.3120 level could set the pace for a move toward the 1.3200 level.
Looking at EUR/USD, the pair rallied above the 1.1000 level, and seems like the pair could continue to move higher toward the 1.1200 level.
Economic Releases
- FOMC Meeting Minutes.
