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GBP/USD Will Likely Break The Resistance Level, Jerome Powell Speech Next.

January 10, 2023 Financial Market, Technical Analysis

Key Take-Aways

  • If GBP/USD overcomes the 1.2215 resistance, it might pick up speed.
  • On the 4-hours chart, it broke over a significant negative trend line with resistance close to 1.2050.
  • The USD/EUR rate rose past the resistance at 1.0700 and may go higher more.
  • The price of gold increased its advance above the $1,875 barrier.

Technical Analysis of GBPUSD

In relation to the US Dollar, the British pound found support at about 1.1845. GBP/USD began a new rise and overcame a significant obstacle close to 1.2000.

The pair was able to settle above the 1.2000 barrier, according to the 4-hour chart. A significant negative trend line with resistance near 1.2050 was clearly crossed.

The pair crossed above the 50% Fib retracement level of the decline from the swing high of 1.2446 to the low of 1.1844. It closed above the 200 simple moving average and the 100 simple moving average (red, 4-hours).

An early resistance on the upward is located close to the 1.2200 level. The area around 1.2215 might serve as the next significant resistance. It is close to the 61.8% Fibonacci retracement level of the decline from the swing high of 1.2446 to the low of 1.1844.

A definite move above the 1.2215 resistance could signal the beginning of a persistent rise. In the scenario outlined, the GBP/USD exchange rate might potentially approach 1.2250. The pair might increase towards the 1.2400 level in the scenario described.

A significant support level and the 100 simple moving average are at 1.2100 on the downside. The area around 1.2035 is now establishing the major support. The pair may move lower if the downside breaks through the 1.2035 zone.

Near the 1.1955 level, there is the next significant support. Any additional losses might pave the way for a move in the direction of the 1.1850 support region.

When examining EUR/USD, the pair is displaying encouraging traits and may soon try to climb over the 1.1800 resistance region in the ensuing sessions.

Economic News To Trade Today

  • Jerome Powell, Federal Reserve Chair Speech.
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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