GBP/USD Bulls Aim Upside Break Above 1.1500

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Key Highlights

• GBP/USD started a decent recovery wave above the 1.1350 level.
• It broke a connecting bearish trend line with resistance near 1.1150 on the 4-hours chart.
• EUR/USD could gain momentum if it clears the 0.9900 resistance.
• USD/JPY remains in a strong uptrend and might test 150.00.

GBP/USD Technical Analysis

The British Pound remained well supported above the 1.0950 level against the US Dollar. GBP/USD formed a base and started a fresh increase above the 1.1200 level.

Looking at the 4-hours chart, the pair was able to gain pace above a connecting bearish trend line with resistance near 1.1150. It cleared the 1.1250 resistance, the 200 simple moving average (green, 4-hours), and the 100 simple moving average (red, 4-hours).

There was a clear move above the 50% Fib retracement level of the downward move from the 1.1495 swing high to 1.0922 low. On the upside, the pair is facing resistance near the 1.1500 level.

The next major resistance is near the 1.1585. A clear move above the 1.1585 level might send the pair towards the 1.1700 level. The next major hurdle could be near the 1.1800 level.

On the downside, an initial support is near the 1.1300 level and the 200 simple moving average (green, 4-hours). The main support is now forming near the 1.1080 level and the 100 simple moving average (red, 4-hours).

A move below the 1.1080 level might send the pair further lower towards 1.1000. A downside break below the 1.1000 zone could open the doors for a new low below 1.0800.

Looking at USD/JPY, the pair remains well supported and it seems like the bulls are now aiming a move towards the 150.00 barrier.

Economic Releases

• German ZEW Business Economic Sentiment Index for Oct 2022 – Forecast -66.0, versus -61.9 previous
• US Industrial Production for Sep 2022 (MoM) – Forecast 0.1%, versus -0.2% previous.