Key points
- GBP/USD started a new rally from the 1.3450 support area.
- An ascending channel is forming and resistance is located at 1.3660 on the four-hour chart.
- EUR/USD could regain momentum if it crosses the 1.1750 resistance level.
- The USD/JPY pair is recovering and may rise towards the 159.20 area.
Technical analysis of GBP/USD
The British pound remained supported above 1.3450 against the US dollar. GBP/USD formed a base and started a new rise above the 1.3500 level.
Looking at the 4-hour chart, the pair is holding above 1.3520, the 100 SMA (red, 4-hours), and the 200 SMA (green, 4-hours). The recent swing low was formed at 1.3510, and the pair is now trading above the 38.2% Fibonacci retracement level of the downward move from the high of 1.3657 to the low of 1.3510.
On the upside, the pair is facing resistance at 1.3595. The first major resistance is located at 1.3600 and the 61.8% Fibonacci retracement level of the downward move from the high of 1.3657 to the low of 1.3510.
The main resistance may be at 1.3650. A close above 1.3650 may open the door for gains above 1.3680. In the mentioned case, the bulls may target a move to the 1.3800 level.
Immediate support is found near 1.3520. The next support level could be at 1.3500. Closing below the 1.3500 level may push the pair towards the 1.3450 level. Any further losses could lead to a new move to 1.3400 in the coming days.
Looking at EUR/USD, the pair is trying to make a new rally, and a close above 1.1750 could lead to steady gains.
Upcoming major economic events:
- UK Services PMI April 2026 – forecast 52.0, versus previous 52.0.
- US ADP Employment Change April 2026 – Expected 99K, vs. 62K previously.
