GBP/USD Could Rally Further Above 1.3600
- GBP/USD extended increase above the 1.3550 resistance zone.
- A major bullish trend line is forming with support near 1.3525 on the 4-hours chart.
- EUR/USD failed to continue above 1.1380 and corrected lower.
- Crude oil price failed to clear the $80.00 resistance zone.
GBP/USD Technical Analysis
This past week, the British Pound started a major increase above 1.3400 against the US Dollar. GBP/USD even broke the 1.3500 zone to move into a bullish zone.
Looking at the 4-hours chart, the pair settled well above the 1.3500 level, the 100 simple moving average (red, 4-hours) and the 200 simple moving average (green, 4-hours).
The pair even spiked above the 1.3600 level and traded to a new multi-week high near 1.3603. Recently, there was a minor downside correction below 1.3560. On the downside, there is a decent support forming near 1.3525.
There is also a major bullish trend line forming with support near 1.3525 on the same chart. The main support is forming near the 1.3400 level and the 100 simple moving average (red, 4-hours).
The 50% Fib retracement level of the upward move from the 1.3173 swing low to 1.3603 high is also near the 1.3388 level. If there is a downside break below 1.3388, the pair could dive towards the 1.3300 level.
On the upside, the pair is facing resistance near 1.3600 level. The next major resistance is near the 1.3620 level. A close above 1.3620 could open the doors for more gains.
Looking at EUR/USD, the pair once again failed to clear the 1.1380 zone and started a fresh decline in the near term.
- Federal Reserve Chair Jerome Powell testifies before Congress.
- European Central Bank's President Christine Lagarde Speech.