GBP/USD Will Likely Reverse Higher In Gains, Price of Oil Dips
Near the 1.2450 area, GBP/USD is seeing significant resistance.
On the 4-hours chart, a significant bullish trend line is developing with support close to 1.2350.
If EUR/USD continues below 1.0920 for an extended period of time, it may correct lower.
The $82.40 resistance area saw a correction downward in the price of crude oil.
Technical Analysis of GBP/USD
1.2450 seems to be a significant area of resistance for the British pound when compared to the US dollar. Before entering a stabilization phase, the GBP/USD exchange rate reached a high of 1.2447.
On the 4-hour chart, the pair gradually dropped from its 1.2447 peak. The 100 simple moving average (red, 4-hours) and the 200 simple moving average are both far above where the pair is currently trading.
Dropping below the 38.2% Fib retracement level of the upward movement from the 1.2087 swing low to 1.2447 high, there was a downward movement. The pair challenged support at 1.2270 and held it decently.
Bulls safeguarded the upward movement from the 1.2087 swing low to 1.2447 high at the 50% Fib retracement level. On the same chart, a significant bullish trend line with support close to 1.2350 is also developing.
The pair may target the 1.2270 support level and the 100 simple moving average if there is a negative break. Near the 1.2200 level and the 200 simple moving average, there is the next significant support. Any more losses might pave the way for a move in the direction of the 1.2080 support region.
The pair is up against resistance near 1.2420. Near the 1.2450 level comes the first significant obstacle. A definite rise above the 1.2450 resistance might signal the beginning of a steady ascent toward the 1.2550 barrier region.
Any further gains might pave the way for a move in the direction of the 1.2680 level. The next significant obstacle is close to 1.2720; if it is cleared, the pair may rise toward the 1.2850 resistance region.
for EUR/USD, there is a chance of a short-term negative correction as the pair is consolidating above the 1.0850 region.
Economic News To Trade Today
- Euro Zone GDP Q4 2022 (Preliminary) (YoY) – Forecast 1.8%, down from 2.3% in the previous quarter.
- Euro Zone GDP Q4 2022 (Preliminary) (QoQ) – Forecast 0%, down from 0.3% in the previous quarter.
Author: Amogo Solomon
- USD/JPY Exposes To Risk of Further Downside, Next Is the Purchasing Manager’s Index
- The AUD/USD Will Likely Keep Gaining, The US Interest Rate Raised To 5.00%
- Gold Price Holding Gains, US Inflation Data Declined
- Non-Farm Payroll: The US Job Market Is Recovering Massively, Will The Dollar Index Gain Continue?
- The Price of Bitcoin Will Likely Rise if It Holds Above The $23,000 Zone