GBP/USD Could Extend Gains, Dollar Dips

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Key Highlights

• GBP/USD started a fresh increase above the 1.3120 resistance.
• A key bullish trend line is forming with support near 1.3140 on the 4-hours chart.
• EUR/USD must clear 1.1120 to start a steady increase.
• Gold price is consolidating gains above the $1,900 support.

GBP/USD Technical Analysis

The British Pound started a fresh increase above the 1.3100 resistance against the US Dollar. GBP/USD even broke the 1.3150 resistance to move into a positive zone.

Looking at the 4-hours chart, the pair settled above the 1.3150 level, the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours).

The pair made a few attempts to clear the 1.3200 and 1.3220 resistance levels. If there is a close above 1.3200, the pair could start another increase. In the stated case, the pair might rise towards the 1.3320 resistance zone.

On the downside, the pair might find support near the 1.3150 level. There is also a key bullish trend line forming with support near 1.3140 on the same chart.

A downside break below the trend line support could start a fresh decline towards the 1.3100 level. The next major support sits near the 1.3050 level.

Looking at EUR/USD, the pair is still struggling to clear the 1.1100 and 1.1120 resistance levels. On the downside, there is a key support sits at 1.0950.

Economic Releases

• ECB’s President Lagarde speech.