December 16, 2024 at 05:58PM
The GBP/USD and EUR/USD are both trading higher on the day, with GBP/USD outperforming. The GBP/USD is currently up by 0.52%, trading at 1.2618 after testing a low of 1.2615 earlier. Meanwhile, the EUR/USD is up by just 0.05%, recovering from its low of 1.0475 and currently trading at 1.0510.
GBP/USD Analysis
The GBP/USD has broken above key technical levels, including the swing area at 1.2659–1.2670 and the 100-bar moving average on the 4-hour chart, now at 1.2676. On the upside, the next hurdles include:
The broken 38.2% retracement and the 100-hour moving average near 1.2700.
The 200-hour moving average, which comes in at 1.2720.A sustained break above these levels would strengthen the bullish case and give buyers greater control moving forward.
EUR/USD Analysis
For EUR/USD, the pair has climbed above the 100-hour moving average at 1.0500 and the 100-bar moving average at 1.0518, but remains below the key 200-hour moving average at 1.0525. This level has been tested seven times since last Tuesday, with sellers defending it each time.
A break above 1.0525 could open the door for further upside, targeting the 38.2% retracement of the November trading range at 1.0563.
On the downside, failure to hold above the moving averages could see the pair retesting the lows near 1.0475.
Outlook
For GBP/USD, buyers will look to maintain momentum above 1.2676, with a break above 1.2720 signaling further strength.
For EUR/USD, the key battle remains at the 200-hour moving average. A decisive move above this level could bring buyers back into control, while failure to clear it may lead to renewed selling pressure.
Traders should monitor these critical levels to gauge momentum and market bias for the remainder of the day.
This article was written by Greg Michalowski at www.forexlive.com.
