CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72.78% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money before trading CFDs.

GBP/USD Continues to Recover

May 24, 2022

  • GBP/USD started an upside correction from below 1.2200.
  • Bearish trend line broken with resistance near 1.2460.

The British Pound, US Dollar pair started to recover after breaking above the 1.2300 resistance level. GBP/USD has since broken above 1.2500 and continued to climb.

GBP/USD 4-Hour Chart (Trend: BULLISH)

On the 4-hours chart, the GBP/USD pair gained strength after breaking above 1.2300. The quote then climbed above the 1.2500 resistance level and the 100-MA (red). A major bearish trend line was also broken with resistance near 1.2460. The quote even moved above the 50% Fibonacci retracement level of the downward move from the swing high of 1.2638 to the swing low of 1.2155. The quote is currently trading above the 76.4% Fibonacci retracement level (of the 1.2638 high to the 1.2155 low).

For the pair to continue bullish, the quote will first need to test resistance near the 1.2650 level and the 200-MA (blue). Above this there is further resistance near 1.2765. A break above the 1.2765 level could see the quote climb back up towards resistance at 1.2880.

In contrast, if the pair turns bearish, the quote will first need to test support near the 1.2500 level. Below this there is further support near 1.2450. Further losses could see the quote drop below the 1.2450 level. A break below here could see the quote drop back down towards 1.2320.

Open an Account. Get started in less than 5 minutes