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GBP/USD Aims More Upsides Above 1.2700

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Aayush Jindal

Key Highlights

  • GBP/USD was able to clear the 1.2600 resistance zone.
  • A crucial support is forming near 1.2525 on the 4-hours chart.
  • EUR/USD surpassed key hurdles near 1.0700 and 1.0720.
  • Gold price is stable above $1,835, and oil price climbed above $115.

GBP/USD Technical Analysis

The British Pound started a steady increase above the 1.2400 resistance against the US Dollar. GBP/USD cleared the 1.2525 resistance zone to move into a positive zone.

Looking at the 4-hours chart, the pair cleared the 1.2620 hurdle, the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours).

It even tested the last key swing high near 1.2640. If the bulls gain strength, there could be a steady increase towards the 1.2700 resistance. The next major barrier could be 1.2750, above which GBP/USD could rise towards the 1.2850 level.

If there is a downside correction, the pair might find bids near the 1.2600 level. The next major support sits near the 1.2525 level. A downside break below the 1.2525 support could send the pair towards the 1.2450 support. The next key support is near 1.2400.

Looking at EUR/USD, the pair gained pace above the 1.0700 resistance. If there is a move above 1.0800, the pair could rise towards 1.0920.

Economic Releases

  • Germany’s Unemployment Change for May 2022 - Forecast -16K, versus -13K previous.
  • Germany’s Unemployment Rate for May 2022 – Forecast 5.0%, versus 5.0% previous.
  • Canadian Gross Domestic Product for Q1 2022 (Annualized) – Forecast +5.4%, versus 6.7% previous.
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