GBP/USD is attempting a fresh increase from the 1.2610 zone. EUR/GBP is gaining pace and might extend its rally above the 0.8700 zone.
Important Takeaways for GBP/USD and EUR/GBP Analysis Today
· The British Pound is trading in a bullish zone above 1.2600 against the US Dollar.
· There was a break above a key bearish trend line with resistance at 1.2640 on the hourly chart of GBP/USD at FXOpen.
· EUR/GBP started a fresh increase above the 0.8620 resistance zone.
· There is a major bullish trend line forming with support near 0.8640 on the hourly chart at FXOpen.
GBP/USD Technical Analysis
On the hourly chart of GBP/USD at FXOpen, the pair started a downside correction from the 1.2760 zone. The British Pound traded below the 1.2700 zone against the US Dollar.
A low was formed near 1.2611 and the pair is now attempting a fresh increase. There was a break above the 23.6% Fib retracement level of the downward move from the 1.2761 swing high to the 1.2611 low. Besides, there was a break above a key bearish trend line with resistance at 1.2640.
The pair is now trading above the 50-hour simple moving average and 1.2680. On the upside, the GBP/USD chart indicates that the pair is facing resistance near the 50% Fib retracement level of the downward move from the 1.2761 swing high to the 1.2611 low at 1.2685.
The next major resistance is near the 1.2705 level. If the RSI moves above 60 and the pair climbs above 1.2705, there could be another rally. In the stated case, the pair could rise toward the 1.2760 level or even 1.2790.
On the downside, there is a major support forming near 1.2600. If there is a downside break below the 1.2630 support, the pair could accelerate lower. The next major support is near the 1.2610 zone, below which the pair could test 1.2550. Any more losses could lead the pair toward the 1.2500 support.
EUR/GBP Technical Analysis
On the hourly chart of EUR/GBP at FXOpen, the pair started a fresh increase from the 0.8580 zone. The Euro traded above the 0.8620 level to move into a positive zone against the British Pound.
The EUR/GBP chart suggests that the pair settled above the 50-hour simple moving average and 0.8640. It is now consolidating gains below the 0.8700 resistance zone. The RSI is moving lower and suggesting a minor downside correction.
If there is no move above 0.8690, the pair could correct lower. Immediate support sits at 0.8665 or the 23.6% Fib retracement level of the upward move from the 0.8598 swing low to the 0.8685 high.
The next major support is near a bullish trend line at 0.8640. It is close to the 50% Fib retracement level of the upward move from the 0.8598 swing low to the 0.8685 high. A downside break below the 0.8640 support might call for more downsides. In the stated case, the pair could drop toward the 0.8600 support level.
Immediate resistance is near 0.8690. The next major resistance for the bulls is near the 0.8700 handle. A close above the 0.8700 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 0.8800 level in the coming sessions.
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