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GBP/USD Aims Steady Recovery as Buyers Test Early Upside

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Aayush Jindal

Key Highlights

  • GBP/USD started a recovery wave above the 1.3120 barrier.
  • It cleared a key bearish trend line with resistance at 1.3115 on the 4-hour chart.
  • Gold could extend upside if it clears the $4,200 resistance.
  • WTI Crude Oil prices declined steadily below $60.00.

GBP/USD Technical Analysis

The British Pound formed a base above 1.3050 against the US Dollar. GBP/USD started a steady recovery and climbed above 1.3100.

Looking at the 4-hour chart, the pair cleared a key bearish trend line with resistance at 1.3115. There was a move above the 38.2% Fib retracement level of the downward move from the 1.3471 swing high to the 1.3009 low.

The pair settled above the 100 simple moving average (red, 4-hour) and tested the 200 simple moving average (green, 4-hour). Immediate resistance sits near 1.3220.

The first key hurdle sits at 1.3240 and the 50% Fib retracement level of the downward move from the 1.3471 swing high to the 1.3009 low. The next area of interest for the bulls could be 1.3295. Any more gains could set the pace for a steady increase toward 1.3350.

On the downside, there is a key support at 1.3160. The next support is 1.3120, below which the pair could start a steady decline to 1.3050. A close below 1.3050 could start a pullback toward 1.3000.

Looking at Gold, the bulls seem to be in action, but they need to push the price above $4,200 for more upside.

Upcoming Key Economic Events:

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