GBP/USD Approaches Key Juncture, Oil Price Recovers
- GBP/USD is facing a strong resistance near 1.2400.
- A bearish trend line is forming with resistance near 1.2420 on the 4-hours chart.
- Crude oil price recovered losses and climbed above $108.00.
- EUR/USD seems to be aiming a move above the 1.0620 zone.
GBP/USD Technical Analysis
The British Pound declined sharply from the 1.2660 zone against the US Dollar. GBP/USD traded as low as 1.1933 before it started a fresh increase.
Looking at the 4-hours chart, the pair was able to climb above the 1.2250 resistance zone. There was a move above the 50% Fib retracement level of the key decline from the 1.2666 swing high to 1.1933 low.
The bulls were able to push the pair above the 1.2320 resistance. However, the pair struggled to gain strength above 1.2400, the 100 simple moving average (red, 4-hours) and the 200 simple moving average (green, 4-hours).
There is also a bearish trend line forming with resistance near 1.2420 on the same chart. The trend line is near the 61.8% Fib retracement level of the key decline from the 1.2666 swing high to 1.1933 low.
A clear move above the 1.2420 resistance zone might push the pair towards the 1.2500 level in the near term. The next major resistance might be 1.2660.
On the downside, there is a major support near the 1.2160 level. Any more losses could increase the chances of a move towards the 1.2000 support.
Looking at EUR/USD, the pair is attempting a steady increase above the 1.0600 and 1.0620 resistance levels.
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