GBP/USD Presses Key Barrier, Breakout Momentum Building?

Key Highlights

• GBP/USD started a recovery wave above 1.3380.
• A major bearish trend line is forming with resistance at 1.3450 on the 4-hour chart.
• Crude oil prices saw heavy swing moves above the $80.00 pivot level.
• EUR/USD is slowly moving lower from the 1.1665 resistance.

  GBP/USD Technical Analysis

  The British Pound recovered some losses and climbed above 1.3350 against the US Dollar. GBP/USD even cleared 1.3400 before the bears appeared.

  Looking at the 4-hour chart, the pair faced a strong resistance near the 100 simple moving average (red, 4-hour) and it stayed well below the 200 simple moving average (green, 4-hour). There is also a major bearish trend line forming with resistance at 1.3450.

  On the upside, the pair is now facing sellers near 1.3450. The first major resistance sits at 1.3470. A close above 1.3470 could open the doors for more gains. In the stated case, the bulls could aim for a move to 1.3520. Any more gains might open the doors for a test of 1.3550 and the 200 simple moving average (green, 4-hour).

  If there is no break above the trend line, the pair might start a fresh decline. Immediate support is seen near 1.3375. The first major area for the bulls might be near the 1.3330 zone.

  A downside break below 1.3330 could send the pair toward 1.3280. The main support sits at 1.3250, below which the pair might gain bearish momentum. In the stated case, it could even revisit 1.3120 in the coming days.

  Looking at EUR/USD, the pair started a fresh decline from 1.1665, and there are chances of more losses in the near term.

  Upcoming Key Economic Events:

  • US Initial Jobless Claims – Forecast 215K, versus 213K previous.
  • US Monthly Budget Statement (Feb).