GBP/USD is struggling to clear the 1.2500 resistance zone. EUR/GBP is now consolidating losses below the 0.8700 resistance.
Important Takeaways for GBP/USD and EUR/GBP Analysis Today
· The British Pound is trading in a bearish zone below 1.2500 against the US Dollar.
· There was a break above a key bearish trend line with resistance near 1.2445 on the hourly chart of GBP/USD at FXOpen.
· EUR/GBP started a fresh decline from the 0.8710 resistance zone.
· There is a major bearish trend line forming with resistance near 0.8700 on the hourly chart at FXOpen.
GBP/USD Technical Analysis
On the hourly chart of GBP/USD at FXOpen, the pair started a major decline from well above 1.2520. The British Pound traded below the 1.2500 support zone against the US Dollar.
The pair tested the 1.2390 support zone. A low was formed near 1.2391 and recently the pair started a fresh increase. There was a decent move above the 50-hour simple moving average at 1.2445. More importantly, there was a break above a key bearish trend line with resistance near 1.2445.
Finally, it spiked above the 61.8% Fib retracement level of the downward move from the 1.2510 swing high to the 1.2391 low. The GBP/USD chart indicates that the pair is facing resistance near the 1.2475 level.
The 76.4% Fib retracement level of the downward move from the 1.2510 swing high to the 1.2391 low is also near 1.2445. The next major resistance is near the 1.2500 level. A clear move above the 1.2500 level could spark a rally toward the 1.2540 level considering the RSI is above 50.
On the downside, there is a major support forming near the 1.2445 level. If there is a downside break below the 1.2445 support, the pair could accelerate lower.
The next major support is near the 1.2390 level, below which the pair could test 1.2350. In the stated case, GBP/USD may perhaps revisit the 1.2320 support. Any more losses could lead the pair toward the 1.2250 support.
EUR/GBP Technical Analysis
On the hourly chart of EUR/GBP at FXOpen, the pair started a fresh decline from the 0.8720 resistance. The Euro traded below the 0.8700 support to move into a bearish zone against the British Pound.
The EUR/GBP chart suggests that the pair settled below the 50-hour simple moving average and 0.8700. A low is formed near 0.8667 and the pair is slowly moving higher and the hourly RSI is back above 50. There was a break above the 23.6% Fib retracement level of the downward move from the 0.8734 swing high to the 0.8667 low.
Immediate resistance is near a major bearish trend line at 0.8700. It coincides with the 50% Fib retracement level of the downward move from the 0.8734 swing high to the 0.8667 low.
The next major resistance for the bulls is near the 0.8720 level. A close above the 0.8720 level might accelerate gains. In the stated case, the bulls may perhaps aim for a test of 0.8740. Any more gains might send the pair toward the 0.8780 level.
If there is no move above 0.8700, the pair could decline again. Immediate support sits at 0.8670. The next major support is near 0.8650.
A downside break below the 0.8650 support might call for more downsides. In the stated case, the pair could drop toward the 0.8600 support level.
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