(function() { var didInit = false; function initMunchkin() { if(didInit === false) { didInit = true; Munchkin.init('105-GAR-921'); } } var s = document.createElement('script'); s.type = 'text/javascript'; s.defer = true; s.src = '//munchkin.marketo.net/munchkin.js'; s.onreadystatechange = function() { if (this.readyState == 'complete' || this.readyState == 'loaded') { initMunchkin(); } }; s.onload = initMunchkin; document.getElementsByTagName('head')[0].appendChild(s); })();(function(h,o,t,j,a,r){ h.hj=h.hj||function(){(h.hj.q=h.hj.q||[]).push(arguments)}; h._hjSettings={hjid:1422437,hjsv:6}; a=o.getElementsByTagName('head')[0]; r=o.createElement('script');r.defer=1; r.src=t+h._hjSettings.hjid+j+h._hjSettings.hjsv; a.appendChild(r); })(window,document,'https://static.hotjar.com/c/hotjar-','.js?sv=');

GBP/USD Holds Uptrend Support, USD/JPY Extends Rally

Article background

Aayush Jindal

Key Highlights

  • GBP/USD corrected lower from the 1.2580 zone.
  • A key bullish trend line is forming with support near 1.2430 on the 4-hour chart.
  • USD/JPY extended its rally and climbed above the 137.00 level.
  • Gold price is struggling to gain pace for a move above $2,000.

GBP/USD Technical Analysis

The British Pound remained in a positive zone above the 1.2400 level against the US Dollar. GBP/USD even climbed above the 1.2520 and 1.2550 resistance levels.

Looking at the 4-hour chart, the pair traded to a new multi-week high at 1.2583 before it faced sellers. There was a minor downside correction below the 1.2550 level, but the pair is trading well above the 100 simple moving average (red, 4 hours).

There is also a key bullish trend line forming with support near 1.2430 on the same chart. The trend line is close to the 100 simple moving average (red, 4 hours).

If there is a downside break below the trend line, the pair might slide toward the 1.2400 support zone or the 200 simple moving average (green, 4 hours). The next major support sits near the 1.2340 level.

Immediate resistance on the upside is near the 1.2550 level. The next key resistance is near the 1.2580 level. A clear upside break and close above the 1.2580 resistance might start a strong increase. The next key resistance is near the 1.2620 zone. Any more gains might send the pair toward 1.2700.

Looking at USD/JPY, there were strong bullish moves and the pair even climbed to a new multi-month high above the 137.00 level.

Economic Releases

  • Euro Zone CPI for April 2023 (YoY) (Prelim) - Forecast +6.9%, versus +6.9% previous.
  • Euro Zone Core CPI for April 2023 (YoY) (Prelim) - Forecast +5.7%, versus +5.7% previous.
  • US Factory Orders for March 2023 (MoM) - Forecast +0.8%, versus -0.7% previous.
Great