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GBP/USD Breaks Hurdle, Yen Gains Momentum

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Aayush Jindal

Key Highlights

  • GBP/USD climbed higher above the 1.2150 resistance zone.
  • EUR/USD might rise steadily above the 1.0285 resistance.
  • USD/JPY declined heavily below the 134.00 support zone.
  • Crude oil price is moving lower towards the $90 support zone.

GBP/USD Technical Analysis

The British Pound started a fresh recovery wave above the 1.2050 resistance against the US Dollar. GBP/USD climbed above 1.2120 to move into a positive zone.

Looking at the 4-hours chart, the pair was able to settle above the 1.2150 level, the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours).

It opened the doors for more gains above the 1.2200 resistance zone. The pair even moved above the 1.2250 level and seems like it could rise further above the 1.2300 resistance zone. The next major resistance is near the 1.2350 level, above which the pair could accelerate higher.

Conversely, GBP/USD might fail to climb above 1.2300 and start a downside correction. An immediate support is near the 1.2200 zone.

The first major support is near the 1.2170 level and a key bullish trend line on the 4-hours chart. Any more losses might send the pair towards the 1.2050 zone.

Looking at crude oil price, there was a rejection near the $104 zone and the price is now moving lower. The main support sits near the $90 level.

Economic Releases

  • UK Nationwide Housing Prices for July 2022 (YoY) – Forecast +11.5%, versus +10.7% previous.
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