Aayush Jindal
Key Highlights
- GBP/USD found support near 1.2500 and climbed higher above 1.2620.
- It surpassed a major bearish trend line with resistance near 1.2640 on the 4-hours chart.
- EUR/USD also extended its rise above the 1.1450 level.
- Gold price climbed further higher and traded above the $1,815 resistance.
GBP/USD Technical Analysis
This past week, the British Pound faced sellers near 1.2670 and it corrected lower against the US Dollar. However, GBP/USD found a strong support at 1.2500 and it recently recovered higher.
Looking at the 4-hours chart, the pair remained well bid above the 1.2500 level, the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours).
It seems like the bulls protected the 50% Fib retracement level of the main upward move from the 1.2251 low to 1.2669 high. The recent recovery was positive as the pair broke a major bearish trend line with resistance near 1.2640.
It opened the doors for more gains above the 1.2670 level. The pair might continue to rise above the 1.2700 and 1.2720 resistance levels in the near term.
If there is a downside correction, the broken trend line at 1.2640 might provide support. The first major support is near the 1.2540, below which it could revisit the 1.2500 support.
Looking at EUR/USD, the pair remained in a positive zone and it recently climbed above the 1.1450 level. More importantly, gold price is gaining momentum and it seems like the bulls are aiming a new multi-year high above $1,820.
Upcoming Economic Releases
- Chicago Fed National Activity Index June 2020 – Forecast 2.15, versus 2.61 previous.
- Canadian Retail Sales May 2020 (MoM) – Forecast +20.0%, versus +19.1% previous.
- Canadian Retail Sales ex Autos May 2020 (MoM) – Forecast +12.5%, versus -22.0% previous.
