(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 Starts Corrective Increase, UK Employment Report Next

Aayush Jindal

Aayush Jindal

Key Highlights

  • GBP/USD started an upside correction from the 1.2150 zone.
  • It broke a key bearish trend line with resistance near 1.2215 the 4-hours chart.
  • EUR/USD is consolidating losses below the 1.0500 resistance.
  • Crude oil price gained bullish momentum and surpassed the $112 level.

 

GBP/USD Technical Analysis

The British Pound found support just above 1.2150 against the US Dollar. GBP/USD formed a base and started a corrective increase above 1.2250.

Looking at the 4-hours chart, the pair was able to clear the 1.2280 resistance zone, the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours).

There was a clear move above the 50% Fib retracement level of the key decline from the 1.2400 swing high to 1.2156 low. The pair is now trading above the 1.2300 resistance zone. It is now approaching the 1.2350 resistance zone.

The bulls might struggle to clear the 76.4% Fib retracement level of the key decline from the 1.2400 swing high to 1.2156 low. If they succeed, the pair could start a major increase.

The next major resistance is near the 1.2400 level. A clear move above the 1.2400 level might push the pair towards the key 1.2500 resistance zone.

If there is no upside break, the pair could start a downside correction below 1.2300. The next major support is near the 1.2250 level. Any more losses may perhaps push GBP/USD towards the 1.2150 level.

Looking at EUR/USD, the pair is still struggling below the 1.0500 level, but it might start a decent recovery wave in the near term.

Economic Releases

  • UK Claimant Count Change for April 2022 – Forecast -38.8K, versus -46.9K previous.
  • UK ILO Unemployment Rate for March 2022 (3M) – Forecast 3.8%, versus 3.8% previous.
  • Euro Zone Gross Domestic Product Q1 2022 (Preliminary) (QoQ) - Forecast 0.2%, versus 0.2% previous.