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GBP/USD Rallies Above 1.2500, Gold Resumes Increase

Key Highlights

  • GBP/USD rallied above the 1.2420 and 1.2500 levels.
  • It broke a key declining channel with resistance near 1.2425 on the 4-hour chart.
  • Gold prices started a fresh increase above the $1,990 resistance.
  • USD/JPY extended losses and traded below the 148.50 support.

 

GBP/USD Technical Analysis

The British Pound started a strong increase above the 1.2350 level against the US dollar. GBP/USD broke the 1.2420 barrier to move into a positive zone.

Looking at the 4-hour chart, the pair even settled above the 1.2450 level, the 100 simple moving average (red, 4 hours), and the 200 simple moving average (green, 4 hours). It also broke a key declining channel with resistance near 1.2425.

Finally, there was a move above the 1.2500 resistance. The pair tested the 1.2550 resistance and started a consolidation. On the upside, the pair is facing resistance near the 1.2565 level.

The next key resistance is near the 1.2580 level. The main resistance is now near the 1.2620 level. A close above the 1.2620 zone could open the doors for more upsides. The next stop for the bulls might be 1.2700.

If not, the pair might start a downside correction below the 1.2500 support. The first major support is now forming near the 1.2465 level. The next key support sits at 1.2440, below which the pair could test the 1.2350 pivot level in the near term.

Any more losses may perhaps open the doors for a move toward the 100 simple moving average (red, 4 hours) at 1.2300.

Looking at Gold, there was a fresh increase above the $1,990 resistance and the bulls might now aim for a move above $2,000.

Economic Releases

  • US Durable Goods Orders for Oct 2023 – Forecast -3.1% versus +4.6% previous.
  • US Initial Jobless Claims - Forecast 225K, versus 231K previous.