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GBP/USD Showing Positive Signs, 1.3200 Presents Resistance

Aayush Jindal

Aayush Jindal

Key Highlights

  • GBP/USD gained strength and settled above the 1.3000 resistance.
  • A rising channel is forming with support near 1.2980 on the daily chart.
  • The UK Claimant Count could change 78.8K in Sep 2020, more than the last 73.7K.
  • The US Consumer Price Index could increase 1.4% in Sep 2020 (YoY), up from +1.3%.

 

GBP/USD Technical Analysis

After many failed attempts, the British Pound managed to clear the 1.3000 resistance against the US Dollar. GBP/USD is showing positive signs, but the bulls might face hurdles near 1.3180 and 1.3200.

Looking at the daily chart, the pair found a strong buying interest near the 1.2700 level, the 100-day simple moving (red), and the 200-days simple moving average (green).

A low was formed near 1.2674 and the pair started a steady increase above the 1.2850 resistance. The pair even cleared the 38.2% Fib retracement level of the key decline from the 1.3482 high to 1.2674 low.

On the upside, the pair could struggle near 1.3120. The first major resistance is near the 1.3180 level, followed by the 1.3200 breakout zone. There is also a rising channel forming with support near 1.2980 on the same chart.

If there is a downside break below the channel support, the pair could correct lower towards the 1.2920 support level. The main support seems to be forming near the 1.2850 level and the 100-day simple moving (red).

Overall, GBP/USD is showing positive signs, but it could struggle near the 1.3200 zone. Looking at EUR/USD, the pair is consolidating gains and buyers are likely to remain active near 1.1750.

Upcoming Economic Releases

  • UK Claimant Count Change Sep 2020 – Forecast 78.8K, versus 73.7K previous.
  • UK ILO Unemployment Rate August 2020 (3M) – Forecast 4.3%, versus 4.1% previous.
  • German Consumer Price Index Sep 2020 (YoY) – Forecast -0.2%, versus -0.2% previous.
  • German Consumer Price Index Sep 2020 (MoM) – Forecast -0.2%, versus -0.2% previous.
  • US Consumer Price Index Sep 2020 (MoM) – Forecast +0.2%, versus +0.4% previous.
  • US Consumer Price Index Sep 2020 (YoY) – Forecast +1.4%, versus +1.3% previous.