Aayush Jindal
Key Highlights
- GBP/USD corrected higher above 1.3900 from the 1.3800 support.
- It is now facing a strong resistance near 1.4000 and 1.4020.
- EUR/USD failed to recover above 1.2000 and it could resume its decline.
- Crude oil price is consolidating gains below $68.00 and $66.50.
GBP/USD Technical Analysis
Earlier this month, the British Pound traded below the 1.4000 support against the US Dollar. GBP/USD found support near 1.3800 and it recently started an upside correction.
Looking at the 4-hours chart, the pair recovered above the 1.3850 and 1.3880 resistance levels. However, the pair faced a strong resistance near the 1.4000 level and it also failed to stay above the 100 simple moving average (red, 4-hours).
There was a fresh decline from 1.4004 high, but the bulls were active above 1.3850. There is also a connecting bullish trend line forming with support near 1.3885 on the same chart.
A clear downside break below the trend line and 1.3850 could lead the pair back towards 1.3800. Any more losses may possibly call for a test of the 1.3750 support. On the upside, 1.4000 level holds the key (a key breakdown zone and a multi-touch zone).
A close above the 1.4000 level could start a fresh increase. In the stated case, the pair could rise steadily towards the 1.4100 and 1.4150 levels.
Looking at EUR/USD, the pair is facing a strong resistance near the 1.2000 level. If there is a downside break below 1.1850, the bears are likely to gain strength.
Economic Releases
- German ZEW Business Economic Sentiment Index for March 2021 – Forecast 74.0, versus 71.2 previous.
- US Retail Sales for Feb 2021 2021 (MoM) – Forecast -0.5%, versus +5.3% previous.
