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GBP/USD Kickstarts Fresh Surge Amid Sharp Decline In Dollar Value

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Aayush Jindal

Key Highlights

  • GBP/USD started a decent increase and climbed above 1.2600.
  • A key bullish trend line is forming with support at 1.2580 on the 4-hour chart.
  • Gold prices cleared the $2,375 resistance to move into a positive zone.
  • USD/JPY dipped again and traded below the 155.00 level.

EUR/USD Technical Analysis

The British Pound started a decent increase above the 1.2550 resistance against the US Dollar. GBP/USD cleared the 1.2600 resistance to move into a positive zone.

Looking at the 4-hour chart, the pair even settled above the 100 simple moving average (red, 4-hour) and tested the 200 simple moving average (green, 4-hour). There was a move toward the 1.2700 level.

A high was formed at 1.2700 and the pair is now consolidating gains. The first major resistance is near 1.2720. A clear move above the 1.2720 resistance might send it toward the 1.2750 level. Any more gains might call for a move toward the 1.2880 level in the near term.

Conversely, GBP/USD might correct gains. Immediate support is near the 1.2665 level. The first major support is near the 1.2620 level. The next major support is at 1.2600.

There is also a key bullish trend line forming with support at 1.2580 on the same chart. If there is a downside break below the 1.2580 support, the pair might test 1.2535 or the 100 simple moving average (red, 4-hour). Any more losses might send the pair toward 1.2450.

Looking at Gold, the bulls came into action and they were able to push prices toward the $2,400 resistance zone.

Economic Releases

  • US Initial Jobless Claims - Forecast 220K, versus 231K previous.
  • US Industrial Production for April 2024 (MoM) – Forecast 0.1%, versus 0.4% previous.
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