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GBP/USD Gains Bullish Momentum As Dollar Extends Decline

Aayush Jindal

Aayush Jindal

Key Highlights

  • GBP/USD started a fresh increase above the 1.2120 resistance.
  • A connecting bullish trend line is forming with support near 1.2180 on the 4-hours chart.
  • Gold price corrected lower after it failed to test the $2,000 mark.
  • EUR/USD jumped above the 1.0650 and 1.0680 resistance levels.

 

GBP/USD Technical Analysis

The British Pound started a steady increase above the 1.2000 resistance against the US Dollar. GBP/USD cleared the key 1.2120 zone to enter a positive region.

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

The upward move was such that the pair even cleared the 1.2200 resistance zone. On the upside, an immediate resistance is near the 1.2280 level. The next major resistance is near the 1.2320.

A clear move above the 1.2320 resistance might send GBP/USD towards the 1.2400 zone. Any more gains might send the pair towards 1.2450. The next major resistance might be 1.2500.

On the downside, an immediate support is near the 1.2200. There is also a connecting bullish trend line forming with support near 1.2180 on the same chart. The next major support is near the 1.2140 level, below which there is a risk of a move towards the 1.2080 level.

Looking at gold price, there was a strong move towards the $2,000 zone before the bears took a stand and initiated a downside correction.

Economic Releases

  • German ZEW Business Economic Sentiment Index for March 2023 – Forecast 16.4, versus 28.1 previous.
  • Canadian Consumer Price Index for Feb 2023 (MoM) – Forecast +0.6%, versus +0.5% previous.
  • Canadian Consumer Price Index for Feb 2023 (YoY) – Forecast +5.4%, versus +5.9% previous.