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GBP/USD Extends Increase But Momentum Keeps Fading

Aayush Jindal

Aayush Jindal

Key Highlights

  • GBP/USD climbed further higher toward the 1.2680 resistance.
  • A major bullish trend line is forming with support at 1.2520 on the 4-hour chart.
  • EUR/USD is still trading below the 1.1090 resistance zone.
  • Crude oil price corrected losses and recovered toward $74.

 

GBP/USD Technical Analysis

The British Pound remained in a positive zone above 1.2500 against the US Dollar. GBP/USD extended its increase above the 1.2550 and 1.2620 resistance levels.

Looking at the 4-hour chart, the pair settled above the 1.2550 level, the 100 simple moving average (red, 4 hours), and the 200 simple moving average (green, 4 hours).

However, the pair seems to be losing bullish momentum above 1.2650. If there is a downside correction, the pair might test the 1.2590 support. The next major support is near the 1.2550 level.

There is also a major bullish trend line forming with support at 1.2520 on the same chart. If there is a downside break below the trend line support, the pair could test the 100 simple moving average (red, 4 hours) at 1.2480.

Immediate resistance on the upside is near the 1.2680 level. The next key resistance is near the 1.2740 level. A clear upside break and close above the 1.2740 resistance might start another steady increase. The next key resistance is near the 1.2850 zone. Any more gains might send the pair toward 1.2900.

Looking at crude oil price, there was a decent recovery wave from the $63.80 zone and the price climbed toward $74.

Economic Releases

  • UK Halifax House Price Index for April 2023 (MoM) - Forecast +0.2%, versus +0.8% previous.
  • UK Halifax House Price Index for April 2023 (3m/YoY) - Forecast +1.7%, versus +1.6% previous.