GBP/USD Gains Could Be Constrained Close to 1.1800 Resistance Level

Key Take-Aways

  • GBP/USD dropped to 1.1649, a fresh multi-month low.
  • On the 4-hours chart, a significant negative trend line is developing with resistance close to 1.1800.
  • Losses on the EUR/USD are condensing above the 0.9900 region.
  • The price of crude oil is rising, and a clear move above the $95 resistance was made.

GBP/USD Technical Analysis

Below the 1.2000 level of support for the US Dollar, the British Pound continued to move downward. GBP/USD fell below the 1.1800 support level and entered a more negative area.

The pair fell below the 1.1800 level, the 100 simple moving average (4-hour red) and the 200 simple moving average on the 4-hour chart.

At 1.1649, the price of the pair reached a fresh multi-month low. It recently made a small upward movement over the resistance area of 1.1700. The price of the pair increased over the 23.6% Fibonacci retracement level of the decline from the swing high of 1.1901 to the low of 1.1649.

The pair is encountering resistance near the 1.1770 level on the upswing. It is quite close to the 50% Fibonacci retracement level of the decline from the swing high of 1.1901 to the low of 1.1649.

Near the 1.1800 level comes the next significant obstacle. On the same chart, a significant negative trend line is also developing, with resistance located close to 1.1800. The pair may advance higher toward the 1.1950 level or the 100 simple moving average if there is a clear move above the 1.1800 barrier.

If not, the pair may continue to fall below the 1.1650 mark. The area around 1.1600 is the next significant support. Any more losses might necessitate a move towards 1.1500.

Regarding the EUR/USD pair, losses are being contained above the 0.9900 level, and the bears appear to be active close to the 1.0000 area.

Economic News to Trade Today

  • German Consumer Price Index (YoY) (Prelim) for August 2022: Forecast +7.8%, up from +7.5% in the previous month.
  • German Consumer Price Index for August 2022 (MoM) (Prelim): Forecast: +0.4%, up from +0.9% in the previous month.
  • US Housing Price Index for March 2022 (MoM): Forecast +1.1%, up from +1.4% in the prior month.
Author:
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.

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