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In this video, FXOpen UK COO Gary Thomson sums up the week’s happenings and discusses the most significant news reports.


[*] Monday morning blues as EY forecast worse UK recession than expected
[*] Natural gas fell by 50% in 1 month
[*] Big Tech woes lead to layoffs, resulting in stock surge
[*] TSLA. Report reassures investors


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GBP/USD and GBP/JPY Could Resume Increase


GBP/USD is consolidating gains pace above the 1.2350 zone. GBP/JPY is also rising and might gain pace if it clears the 161.80 resistance zone.

Important Takeaways for GBP/USD and GBP/JPY


[*] The British Pound is showing positive signs above 1.2350 against the US Dollar.
[*] There is a key contracting triangle forming with resistance near 1.2400 on the hourly chart of GBP/USD.
[*] GBP/JPY started a fresh increase above the 160.00 resistance zone.
[*] There is a major bullish trend line forming with support near 160.90 on the hourly chart.


GBP/USD Technical Analysis

This past week, the British Pound found support near the 1.2280 zone against the US Dollar. The GBP/USD pair formed a base and started a steady increase above the 1.23200 level.

There was a clear move above the 1.2350 resistance and the 50 hourly simple moving average. The pair even cleared the 1.2400 resistance. A high is formed near 1.2418 on FXOpen and the pair corrected lower.

GBP/USD Hourly Chart


There was a move below the 1.2380 level, but the bulls were active near the 1.2345. The pair is now rising and trading above the 50% Fib retracement level of the recent decline from the 1.2418 swing high to 1.2345 low.

An immediate resistance on the upside is near the 1.2400 level. There is also a key contracting triangle forming with resistance near 1.2400 on the hourly chart of GBP/USD.

The triangle resistance is near the 76.4% key contracting triangle forming with resistance near 1.2400 on the hourly chart of GBP/USD. The next major resistance is near the 1.2420 level, above which the pair could start a steady increase towards 1.2450.

An upside break above 1.2450 might start a fresh increase towards 1.2550. Any more gains might call for a move towards 1.2600 or even 1.2640.

An immediate support is near the 1.2380. The next major support is near the 1.2350 level. If there is a break below the 1.2350 support, the pair could test the 1.2280 support. Any more losses might send GBP/USD towards 1.2220.

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Disclaimer: This Forecast represents FXOpen Companies opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Companies products and services or as Financial Advice.