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GBP/USD Gains Momentum, 1.3620 Is The Key

Key Highlights

  • GBP/USD started a fresh increase and climbed above 1.3500.
  • A key rising channel is forming with support near 1.3475 on the 4-hours chart.
  • EUR/USD seems to be facing another hurdle near 1.1380.
  • The US ISM Manufacturing Index could drop from 61.1 to 60.2 in Dec 2021.

 

GBP/USD Technical Analysis

The British Pound started a fresh increase from the 1.3200 zone against the US Dollar. GBP/USD climbed above the 1.3350 and 1.3400 resistance levels to move into a positive zone.

Looking at the 4-hours chart, the pair settled above the 1.3400 level, the 100 simple moving average (red, 4-hours) and the 200 simple moving average (green, 4-hours).

The pair even climbed above the 1.3500 level and tested 1.3550. It is now consolidating gains and facing resistance near 1.3550. The next major resistance is near the 1.3620 level. A close above 1.3620 could open the doors for a steady increase.

On the downside, an immediate support is near the 1.3480 level. There is also a key rising channel forming with support near 1.3475 on the same chart.

A downside break below the channel support might send the pair towards 1.3420. Any more losses might send the pair towards the 1.3350 level and the 100 simple moving average (red, 4-hours).

Looking at EUR/USD, the pair surpassed the 1.1350 resistance, but there was no clear move above the 1.1380 and 1.1390 levels.

Economic Releases

  • Germany’s Unemployment Change for Dec 2021 - Forecast -15K, versus -34K previous.
  • Germany’s Unemployment Rate for Dec 2021 – Forecast 5.3%, versus 5.3% previous.
  • UK Manufacturing PMI for Dec 2021 – Forecast 57.6, versus 57.6 previous.
  • US ISM Manufacturing Index for Dec 2021 – Forecast 60.2, versus 61.1 previous.