Key Highlights
- GBP/USD started a consolidation phase below the 1.3000 resistance.
- A key declining channel or a bullish flag is forming with resistance at 1.2955 on the 4-hour chart.
- EUR/USD is eyeing a fresh increase above the 1.0870 resistance zone.
- Gold prices corrected some gains after setting a record high near $3,150.
GBP/USD Technical Analysis
The British Pound failed to continue higher above the 1.3000 resistance against the US Dollar. GBP/USD corrected some gains and tested the 1.2880 support.
Looking at the 4-hour chart, the pair traded below the 100 simple moving average (red, 4-hour) but remained above the 200 simple moving average (green, 4-hour). There was a move below the 23.6% Fib retracement level of the upward move from the 1.2557 swing low to the 1.3014 high.
The pair is now attempting a fresh increase above 1.2900. On the upside, the pair is facing resistance near the 1.2960 level. There is also a key declining channel or a bullish flag forming with resistance at 1.2955 on the same chart.
The next major resistance is near the 1.2980 level. The main resistance is now forming near the 1.3000 zone. A close above the 1.3000 level could set the tone for another increase. In the stated case, the pair could even clear the 1.3050 resistance.
On the downside, immediate support sits near the 1.2880 level. The next key support sits near the 1.2860 level. Any more losses could send the pair toward the 1.2820 level.
Looking at Gold, the bulls remained in action and pushed the price to a new record high before there was a downside correction.
Upcoming Economic Events:
- Euro Zone Services PMI for March 2025 – Forecast 50.4, versus 50.4 previous.
- UK Services PMI for March 2025 – Forecast 53.2, versus 53.2 previous.
- US Services PMI for March 2025 – Forecast 54.3, versus 54.3 previous.
- US ISM Services PMI for March 2025 – Forecast 53.0, versus 53.5 previous.
