ACT Markets > Blog > Financial Market > GBP/USD Has the Potential To Recover Gains Massively, Gold Holds Strong

GBP/USD Has the Potential To Recover Gains Massively, Gold Holds Strong

February 28, 2023 Financial Market

key Take-Aways

  • The crucial 1.1920 support level was once again tested by GBP/USD.
  • In the 4-hours chart, a significant negative trend line is developing with resistance close to 1.2060.
  • A rebound wave is being attempted by EUR/USD above the 1.0600 barrier area.
  • The price of gold is trying to hold above the $1,800 level.

Technical Analysis of GBU/USD

The British Pound began a new slide versus the US Dollar from well above 1.2100. GBP/USD fell below the 1.2000 level of support and moved into a negative area.

The pair fell below the 1.2050 support level, the 100 simple moving average (red, 4-hours), and the 200 simple moving average, according to the 4-hours chart.

It then retested the support zone for the key 1.1920. At 1.1922, a low was created, and most recently, the pair began an upward correction. Over the resistance levels of 1.1950 and 1.2000, there was a wave.

The price of the pound against the dollar surged over the 50% Fibonacci retracement level of the decline from the 1.2147 swing high to the 1.1922 low. Around the 1.2060 level, there is immediate resistance on the upswing.

In the same chart, a significant bearish trend line is also developing, with resistance located close to 1.2060. Near the 1.2100 level comes the next significant resistance. a definite rise above the resistance at 1.2100.

The 200 simple moving average and the 1.2200 level may be the next target. Any further advances might pave the way for a move in the direction of the 1.2280 level.

On the downside, a strong support is located close to the 1.1950 mark. The next significant support is close to the 1.1920 level, below which a move towards the 1.1850 level is possible. Any additional losses might pave the way for a decline toward 1.1720.

Looking at EUR/USD, the pair recently corrected upward after testing the 1.0535 area. It now faces difficulties close to the 1.0640 and 1.0650 levels.

Economic News To Trade Today

  • Gross Domestic Product for Canada today : forecast – 0.2% versus -0.7% previous
  • The US Housing Price Today: forecast -0.6% versus -0.1%
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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