GBP/USD Has the Potential To Recover Gains Massively, Gold Holds Strong
- 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.
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Author: Amogo Solomon
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