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GBP/USD Aims Recovery Above 1.2100, Oil Price Rallies

Aayush Jindal

Aayush Jindal

Key Highlights

  • GBP/USD is attempting a recovery wave above the 1.2000 resistance zone.
  • A major bearish trend line is forming with resistance near 1.2060 on the 4-hours chart.
  • EUR/USD recovered above the 1.0680 resistance zone.
  • Crude oil price rallied above the $80.00 resistance zone.

 

GBP/USD Technical Analysis

The British Pound remained well bid above the 1.1920 zone against the US Dollar. GBP/USD formed a base and recently started an upside correction above 1.1980.

Looking at the 4-hours chart, the pair was able to clear the 1.2000 resistance zone. The pair is now testing the 50% Fib retracement level of the downward move from the 1.2143 swing high to 1.1924 low.

The 100 simple moving average (red, 4-hours) is also acting as a resistance near 1.2040. The next major resistance is near the 1.2060 level. There is also a major bearish trend line forming with resistance near 1.2060 on the same chart.

A clear move above the 1.2060 resistance might start a steady increase towards the 1.2120 zone. Any more gains might send the pair towards 1.2180.

On the downside, an immediate support is near the 1.2000 level. The next major support is near the 1.1975 level, below which there is a risk of a move towards the 1.1925 level. Any more losses could open the doors for a drop towards 1.1840.

Looking at crude oil price, there was a strong upward move and the price was able to clear the $80.00 resistance zone.

Economic Releases

  • UK Halifax House Price Index for Feb 2023 (MoM) - Forecast +0.4%, versus 0% previous.
  • UK Halifax House Price Index for Feb 2023 (3m/YoY) - Forecast +2%, versus +1.9% previous.