GBP/USD has shown signs of a recovery as it bounced back from the support level of 1.2300. The pair managed to break a bearish trend line with resistance at 1.2420 on the 4-hour chart, indicating a potential shift in momentum. Despite testing the 1.2300 zone, the pair has started a wave of recovery and is now trading above 1.2380. This recovery was fueled by a break above the 23.6% Fib retracement level of the recent downward move.
On the 4-hour chart, GBP/USD is currently facing resistance near the 1.2450 level, with the key resistance zone lying at 1.2500. A clear break above the 1.2500 level could lead to further upside momentum, with the possibility of the pair reaching as high as 1.2650. On the downside, immediate support is seen at 1.2400, followed by a major support level at 1.2380. If the pair breaks below 1.2380, the next support level to watch is at 1.2350, with a crucial support forming at 1.2300.
Meanwhile, EUR/USD is consolidating and is aiming for a move above 1.0750. The pair has been trading in a range-bound market, with key resistance seen at 1.0750. A break above this level could trigger a bullish move towards higher levels. On the other hand, a failure to break above 1.0750 could result in a continuation of the current consolidation phase.
In the commodities market, crude oil prices found support near the $81.50 zone after extending losses. The price of oil recently started an upside correction, indicating a potential reversal in the downtrend. Traders will be closely watching the price action around the $81.50 support level for further clues on the future direction of oil prices.
In terms of economic releases, US Durable Goods Orders for March 2024 are forecasted to increase by 1.5% compared to the previous reading of 1.4%. Additionally, US Durable Goods Orders ex Defense for March 2024 are expected to rise by 2.5% versus the previous reading of 2.2%. These economic indicators will provide insights into the strength of the US economy and could impact the value of the US Dollar against other major currencies.
Overall, the technical charts of GBP/USD and EUR/USD suggest potential trading opportunities for investors, with key resistance and support levels to watch for. Traders should closely monitor these charts along with economic releases to make informed trading decisions in the forex and commodities markets.