GBP/USD Broke The 1.1800 Resistance, 1.1600 Stood As Support

Key Take-Aways

The resistance levels of 1.1600 and 1.1700 were overcome by GBP/USD.

On the 4-hours chart, a significant bullish trend line is developing with support close to 1.1600.

A moment of consolidation for the EUR/USD began below the 1.0350 level.

The price of gold is indicating that it will increase above $1,770.

Technical Analysis of GBP/USD

In relation to the US Dollar, the British Pound established a base above the 1.1150 mark. GBP/USD began to rise steadily and was able to stabilize above the resistance level of 1.1500.

On the 4-hours chart, the pair moved higher than the resistance at 1.1600, the 100 simple moving average (4-hours, red), and the 200 simple moving average (green, 4-hours).

The pair even rose beyond the 1.1700 and 1.1750 levels as a result of the upward movement. Before there was a slight downward adjustment, it reached a high of 1.1854. The 1.1650 level serves as a temporary support.

Near the 1.1620 zone is the next significant support. At 1.1600, the primary support is located. On the same chart, a significant bullish trend line with support close to 1.1600 is also developing. A closing below 1.1600 may signal the beginning of a new, severe slump. In the aforementioned scenario, the GBP/USD pair may fall near the 1.1250 support.

An immediate upward resistance is located close to the 1.1850 level. Near 1.1920 may serve as the next significant resistance. Any further gains would accelerate a move in the direction of the 1.2000 mark, over which it might potentially attempt 1.2150.

The bulls appear to be in control of the gold price and may strive for more rises above the $1,770 mark in the upcoming sessions.

Economic News To Trade Today

UK claimant count change for October 2022 is predicted to be -12.6K, down from +25.5K in the past.

UK ILO Forecast 3.5% Unemployment Rate for Sep 2022 (3M), down from 3.5% in the prior period.

Euro Zone GDP Q3 2022 (Preliminary) (QoQ) – Forecast 0.2%, up from 0.2% in the previous quarter.

Amogo Solomon is a Broker-Dealer/Market Research analyst and writer in ACT Brokers with a background in Computer Science, Data Analytics, and Forex Broker Dealing. He specializes in Forex Dealing, markets Analysis, Currency research, forex fundamental and technical analysis, and Monitoring of Forex trends, Stocks, Equities, Cryptos, and Commodities. He possesses strong technical and analytical skills and is well known for his entertaining and informative analysis of the global economy, fiat currency, commodities, Stocks, Indexes, Futures, and Options markets. He held a Bachelor's degree in Computer Science and Nanodegree in Programming for Data Science Enterprise.