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GBP/USD Dips But This Support Holds The Key

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Aayush Jindal

Key Highlights

  • GBP/USD struggled near 1.2525 and corrected lower.
  • It traded below a key bullish trend line with support near 1.2400 on the 4-hour chart.
  • EUR/USD also corrected lower below the 1.0880 support level.
  • Crude oil prices remained elevated and eye more gains.

GBP/USD Technical Analysis

The British Pound gained pace above 1.2400 against the US dollar. GBP/USD even broke the 1.2500 resistance before the bears appeared.

Looking at the 4-hour chart, the pair traded as high as 1.2525 and settled above the 1.0900 resistance, the 100 simple moving average (red, 4 hours), and the 200 simple moving average (green, 4 hours).

Recently, there was a downside correction below the 1.2480 support. The pair traded below a key bullish trend line with support near 1.2400 on the same chart. However, the pair is still above the 1.2320 support and the 100 simple moving average (red, 4 hours).

The next major support is near the 1.2250 level, below which the pair might test the 1.2220 zone. Any more losses might send the pair toward the 1.2150 level.

On the upside, the pair is now facing resistance near the 1.2400 level. The next key resistance is near the 1.2450 zone. A clear move above the 1.2450 resistance might send the pair toward the 1.2525 zone. Any more gains might send the pair toward 1.2620.

Looking at crude oil prices, the bulls were active near the $80 zone and they seem to be aiming for more gains in the near term.

Economic Releases

  • Euro Zone Retail Sales for March 2023 (YoY) - Forecast -3.5%, versus -2.3% previous.
  • Euro Zone Retail Sales for March 2023 (MoM) - Forecast -0.8%, versus +0.3% previous.
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