GBP/USD Will Likely Gain Stronger if It Breaks The Resistance
Above the 1.1350 resistance, the GBP/USD pair began to rise once more.
On the 4-hour chart, it is up against a significant negative trend line with resistance located close to 1.1515.
The EUR/USD price has risen above 0.9900 and may do so further.
Gains in the price of crude oil could continue above the $94 and $95 resistance levels.
Technical Analysis of GBP/USD
The British pound was still strongly bid against the US dollar over the 1.1120 mark. Above the resistance levels of 1.1250 and 1.1350, the GBP/USD pair began a new uptrend.
On the 4-hour chart, the pair picked its speed after it made a settlement above the 1.1350 mark. Even the 100 simple moving average (red, 4-hours) and the 200 simple moving average were broken through as it closed above the level of 1.1400. (green, 4-hours).
The bulls drove the pair above the 50% Fibonacci retracement level of the decline from the swing high of 1.1645 to the low of 1.1145. It currently encounters resistance close to the 1.1520 level.
On the same chart, there is a significant negative trend line with resistance close to 1.1515. It is close to the 61.8% Fib retracement level of the decline from the swing high of 1.1645 to the low of 1.1145.
Near 1.1640 may serve as the next significant resistance. Any additional gains would accelerate a move in the direction of the 1.1720 mark, over which it might even touch 1.1800.
Close to the 1.1400 level and the 100 simple moving average is an initial support (red, 4-hours). The area around 1.1350 is the next significant support. The 200 simple moving average or the 1.1250 zone serves as the primary support (green, 4-hours).
Selling pressure can become more intense if the price closes below 1.1250 and the 200 simple moving average (green, 4-hours). In the described scenario, it might fall toward the 1.0050 support.
When examining EUR/USD, the pair also began to move steadily above the 0.9900 resistance and may do so in the near future.
Economic News To Trade Today
Retail Sales in the Euro Zone are expected to decrease by 1.3% in September 2022 (YoY) compared to the previous month by -2.0%.
Author: Amogo Solomon
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