Key Highlights
- GBP/USD is attempting to recover from the 1.2840 support zone.
- A connecting bearish trend line is forming with resistance at 1.3020 on the 4-hour chart.
- EUR/USD could gain bullish pace if it clears the 1.0920 resistance.
- Bitcoin bulls aim for a fresh move above the $70,000 resistance.
GBP/USD Technical Analysis
The British Pound started an upside correction from the 1.2840 zone against the US Dollar. GBP/USD climbed above the 1.2880 and 1.2950 resistance levels.
Looking at the 4-hour chart, the pair traded above the 50% Fib retracement level of the downward move from the 1.3043 swing high to the 1.2843 low. However, the pair struggled to settle above the 100 simple moving average (red, 4-hour) and remained well below the 200 simple moving average (green, 4-hour).
On the downside, immediate support sits near the 1.2940 level. The next key support sits near the 1.2890 level. Any more losses could send the pair toward the 1.2840 level.
On the upside, the pair could face resistance near the 1.3020 level. There is also a connecting bearish trend line forming with resistance at 1.3020 on the same chart. The first key resistance is near the 1.3050 level.
A close above the 1.3050 level could set the tone for another increase. The next major resistance could be 1.3120, above which the price could accelerate higher toward the 1.3200 resistance.
Looking at EUR/USD, the pair started a recovery wave and the bulls now aim for a move above the 1.0920 resistance.
Upcoming Economic Events:
- Euro Zone Services PMI for Oct 2024 – Forecast 51.2, versus 51.2 previous.
- UK Services PMI for Oct 2024 – Forecast 56.0, versus 57.2 previous.
