ACT Markets > Blog > Forex > Technical Analysis > GBP/USD Has Potential to Gain Higher After breaking The 1.2300 Level, Canadian CPI Next

GBP/USD Has Potential to Gain Higher After breaking The 1.2300 Level, Canadian CPI Next

January 17, 2023 Financial Market, Technical Analysis

Key Take-Away

  • Above the 1.2200 resistance, the GBP/USD pair began to rise once more.
  • On the 4-hours chart, it crossed over a significant negative trend line with resistance close to 1.2050.
  • It might be difficult for EUR/USD to go past the 1.0920 resistance area.
  • In November 2022, the UK ILO unemployment rate might stay at 3.7%.

Technical Analysis of GBP/USD

In relation to the US Dollar, the British Pound began a new uptrend over the 1.2150 barrier level. GBP/USD moved into a bullish area after breaking through the 1.2200 resistance.

On the 4-hour chart, the pair moved over a significant negative trend line with resistance located close to 1.2050. The advance over the 1.2200 resistance, the 100 simple moving average (red, 4-hours), and the 200 simple moving average became possible as a result.

The crucial slide from the 1.2446 swing high to 1.1841 low was well over the 50% Fib retracement level. An early resistance on the upward is located close to the 1.2300 level.

The area around 1.2345 might serve as the next significant resistance. A definite move above the 1.2345 resistance could signal the beginning of a persistent rise. GBP/USD might possibly surpass the 1.2500 zone in the scenario described. Near 1.2620 is the next significant obstacle, and if it is cleared, the pair may move toward 1.2800.

At 1.2120, there is a significant support for the downside. Near the 1.2050 level is the next significant support. The pair may move lower if the downside breaks through the 1.2050 zone.

Near the 1.2000 level is the next significant support. Any additional losses might pave the way for a move in the direction of the 1.1850 support region.

Looking at the EUR/USD pair, it is difficult to see a clear rise above a significant obstacle close to the 1.0920 resistance.

Economic News To Trade Today

  • UK claimant count change for December 2022 is predicted to be 11.0K, down from 30.5K in the past.
  • The UK ILO expects the unemployment rate to be 3.7% in November 2022 (3M), down from 3.7% in November 2021.
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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