Key High Take-Aways
- GBP/USD began an upside correction from 1.1935.
- On the 4-hour chart, A key declining trendline is building up with resistance near 1.2340.
- EUR/USD is striving beneath the 1.0600 resistance zone.
- USD/JPY is targeting more highs beyond the 135.50 level.
GBP/USD Technical Analysis
GBP/USD dropped massively beneath 1.2500. It smashed the 1.2000 level before it found a support base.
On the 4-hour chart, the pair transacted as low as 1.1933. It began an upside correction and traded beyond the 1.2100 resistance region. A move above the 50% Fib retracement level of the downward move from the 1.2599 swings high to the 1.1933 low was seen.
Nevertheless, the pair remained beneath the 1.2450 resistance, the 100 simple moving average (red, 4 hours), and the 200 simple moving average (green, 4 hours).
The pair derailed near the 61.8% retracement level of the declining move from the 1.2599 swings high to the 1.1933 low. Alongside the same chart, a key declining trendline is building up near 1.2340.
Furthermore, an instant resistance is near the 1.2340 level on the upside. The succeeding key obstacle is likely near 1.2400. A confirmed move above the 1.2400 level could drive the pair towards the 1.2600 level in the near term. Else, it could begin a new drop towards the 1.2150 support. The succeeding key support is close to the 1.2080 level. Further losses could trigger a test of the 1.2000 support level.
For EUR/USD, the pair is integrating beyond the 1.1450 support region and is being constrained by a major resistance close to the 1.0600 level.
Today’s Economic Release
- Canadian Retail Sales (MoM) – Forecast +0.8%, versus 0% previous.
- Canadian Retail Sales ex Autos (MoM) – Forecast +0.6%, versus +2.4% previous.
Author: Amogo Solomon
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