GBP/USD Targets Upside Gains Above 1.1500, Gold Will Likely Recover
- Above the 1.1350 mark, the GBP/USD pair began a respectable recovery wave.
- On the 4-hours chart, it broke through a converging negative trend line that served as resistance near 1.1150.
- If EUR/USD overcomes the resistance above 0.9900, it might gain momentum.
- The USD/JPY pair is still strongly trending upward and may hit 150.00.
Technical Analysis of GBP/USD
Above the 1.0950 mark, the British pound’s support versus the US dollar was still strong. GBP/USD established a base and began a new upward trend over 1.1200.
On the 4-hour chart, the pair managed to move above a converging bearish trend line that served as resistance close to 1.1150. It overcame the resistance at 1.1250, as well as the 100 and 200 simple moving averages (green, 4-hours).
The 50% Fib retracement level of the decline from the 1.1495 swing high to 1.0922 low was clearly moved above. The pair is encountering resistance near the 1.1500 level on the upswing.
The next significant barrier is located close at 1.1585. The pair may advance toward the 1.1700 level if there is a decisive rise above the 1.1585 level. Near the 1.1800 level may be the next significant obstacle.
On the downside, the 200 simple moving average and the area around 1.1300 serve as preliminary supports. The 100 simple moving average and the 1.1080 level are currently where the primary support is forming.
A move below 1.1080 might push the pair farther lower, possibly toward 1.1000. New lows below 1.0800 can be possible if the decline breaks through the 1.1000 zone.
The USD/JPY pair is still strongly supported, and it appears that the bulls are now aiming for the 150.00 resistance level.
Economic News To Trade Today
- US Industrial Production for September 2022 (MoM) is expected to increase by 0.1%, compared to a prior -0.2%.
Author: Amogo Solomon
- The New Zealand Dollars (NZD) Now In Focus As The RBNZ Is Set To Hike its Official Cash Rate Further
- DXY BREAKS OUT OF THE DAILY DEMAND – Strong Enough to Start a Bull Market?
- CURRENCY QUAKE: BRICS Alliance Sends Shockwaves Through US Dollar – Will the Retail Sales Say Otherwise?
- CADCHF COOKING A MASSIVE RALLY – The CXY Approaching H4 Demand.
- GOLD BECOMES INDECISIVE – DXY Stuck in Demand Zone.