GBP/USD Could Keep Gains Higher if The US Dollar Weakens, Gold Recovering.

Key Take-Aways

  • The price of GBP/USD resolved from the 1.2550 region.
  • On the 4-hour chart, it fell below a significant bullish trendline with support close to 1.2410
  • Additionally, the EUR/USD fell and could challenge the 1.0880 support.

Technical Analysis of GBP/USD

In relation to the US dollar, the British Pound accelerated above the barrier at 1.24300. Before the decline, GBP/USD rose beyond the 1.24400 mark.

On the 4-hour time frame, the price transacted to a high of 1.2500 zone before a decline to a support area of 1.23500. the upside move will likely be sustained with massive gains in a near term as core economic indicators keep pricing into the market space. However, if the market is in favor of dollars, the pair could be dragged to the downside below the 1.23000.

For EUR/USD, the price resolved lower beneath the 1.09600 before resolving higher.

Economic Release To Trade Today

  • The Canadian Consumer Price Index (YoY) – Forecast 4.5% versus 4.9% previous.
  • The Canadian Consumer Price Index (MoM) – Forecast 0.6% versus 0.4% previous.
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.