GBP/USD is closing in on a Major Defining Point, As the Price of Oil Rebounds
- GBP/USD is encountering a firm resistance close to 1.2400.
- Buyers are closing in with resistance close to 1.2420 on the four-hour chart.
- The price of crude oil rebounded and rose above $108.00.
- EUR/USD appears to be lining up a move above the 1.0620 zone.
GBP/USD Technical Analysis
GBP dropped swiftly from the 1.2660 zone against the USD. GBP/USD transacted as low as 1.1933 before a new rise.
From the four hours chart, the pair rose above the 1.2250 resistance zone. There was a move above the 50% Fib retracement level of the key dip from the 1.2666 swing high to 1.1933 low.
The buyers successfully push the pair above the 1.2320 resistance. Nevertheless, the pair wrestled to gain strength above 1.2400, the 100 SMA (red, four hours) and the 200 SMA (green, four hours).
There was also a selling trend line forming with resistance close to 1.2420 on the same chart. The trend line is close to the 61.8% Fib retracement level of the major dip from the 1.2666 swing high to the 1.1933 low.
A clear drive above the 1.2420 resistance zone could drive the pair towards the 1.2500 level in short term. The upcoming support is close to the 1.2660 level. Further losses might raise the hope of a move towards the 1.2000 support.
EUR/USD is looking for a stable increase above the 1.0600 and 1.0620 resistance levels.
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