GBP/USD Rally Takes Breather, Why Dips Might Be Limited
- GBP/USD rallied above the 1.2200 and 1.2250 levels.
- A major bullish trend line is forming with support near 1.2170 on the 4-hours chart.
- EUR/USD started a consolidation phase above the 1.0450 support.
- Gold price is struggling to gain bullish momentum above $1,800.
GBP/USD Technical Analysis
The British Pound started a fresh increase from the 1.1900 support zone against the US Dollar. GBP/USD gained pace for a move above the 1.2000 resistance zone.
Looking at the 4-hours chart, the pair settled above the 1.2120 zone, the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours).
The bulls even pushed the pair above the 1.2200 resistance. Finally, there was a move above the 1.2300 zone. A high was formed near 1.2344 before the pair started a consolidation phase. On the upside, the pair is facing resistance near the 1.2350.
The next major resistance may perhaps be near 1.2420. A clear move above the 1.2420 resistance might start another decent increase.
In the stated case, GBP/USD may perhaps test 1.2500. Any more gains could set the pace for a move towards the 1.2640 resistance zone.
An initial support is near the 1.2200 level. The next major support is near the 1.2180 zone. There is also a major bullish trend line forming with support near 1.2170 on the same chart. Any more losses might send the pair towards the 1.2120 support zone.
Looking at EUR/USD, the pair started a consolidation phase above the 1.0450 support and might aim a fresh increase in the near term.
- German Factory Orders for Oct 2022 (MoM) – Forecast -0.2%, versus -4.0% previous.
- US Goods and Services Trade Balance for Oct 2022 - Forecast $-79.1B, versus $-73.2B previous.