Key Take-Aways
- The 1.2200 and 1.2250 levels were breached by the GBP/USD price.
- On the 4-hours chart, a significant bullish trend line is developing with support close to 1.2170.
- A moment of consolidation for the EUR/USD began above the 1.0450 support.
- The price of gold is finding it difficult to get above $1,800.
Technical Analysis of GBP/USD
The 1.1900 support level versus the US Dollar marked the beginning of a new climb for the British pound. GBP/USD picked some speed to move past the 1.2000 resistance level.
On the chart for the past four hours, the pair has stabilized above the 1.2120 area, the 100 simple moving average (red, four hours), and the 200 simple moving average.
Even the resistance at 1.2200 was breached by the bulls. The price finally climbed above the 1.2300 level. Before the pair entered a consolidation phase, a high was created near 1.2344. The pair is encountering resistance near 1.2350 on the upswing.
The area around 1.2420 might serve as the next significant resistance. Another solid gain might begin with a clear break above the 1.2420 resistance.
GBP/USD may test 1.2500 under the aforementioned scenario. Any further gains might pave the stage for a move in the direction of the 1.2640 resistance region.
The 1.2200 level serves as a temporary support. Near the 1.2180 zone is the next significant support. On the same chart, a significant bullish trend line is also developing, with support located close to 1.2170. Any further losses might push the pair in the direction of the 1.2120 support area.
Looking at the EUR/USD pair, it entered a phase of consolidation above the 1.0450 support and may strive for a new rise in the near future.
Economic News To Trade Today
- US Goods and Services Trade Balance for October 2022 is expected to be $-79.1 billion, down from the previous $-73.2 billion.
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