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GBP/USD Eyes Sustained Increase Above 1.2350

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Aayush Jindal

Key Highlights

  • GBP/USD is showing positive signs above the 1.2220 level.
  • A connecting bullish trend line is forming with support at 1.2240 on the 4-hours chart.
  • EUR/USD is well supported above the 1.0720 support zone.
  • USD/JPY might attempt a recovery wave if it clears the 132.00 resistance.

GBP/USD Technical Analysis

The British Pound gained pace above the 1.2050 resistance against the US dollar. GBP/USD broke the 1.2150 level to settle in a positive zone.

Looking at the 4-hours chart, the pair even settled above the 1.2200 level, the 100 simple moving average (red, 4-hours) and the 200 simple moving average (green, 4-hours). It traded towards 1.2350 before there was a downside correction.

The pair tested the 1.2200 support zone and remained in a positive zone. It is now rising, with an immediate resistance near the 1.2320 level.

The first major resistance is near the 1.2350 level. The next major resistance is near the 1.2400. A clear move above the 1.2400 resistance might send the pair towards the 1.2500 zone. Any more gains might send the pair towards 1.2580 or even 1.2700.

On the downside, an immediate support is near the 1.2220. The next major support is near the 1.2200 level, below which there is a risk of a move towards the 100 simple moving average (red, 4-hours). Any more losses might open the doors for a drop towards the 1.1920 level.

Looking at EUR/USD, the pair stayed above the 1.0720 support zone and might attempt a fresh increase if GBP/USD extends gains.

Economic Releases

  • ECB's President Lagarde speech.
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