Market Analysis: GBP/USD Attempts Fresh Increase While EUR/GBP Faces Hurdle

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GBP/USD is attempting a fresh increase from the 1.2770 region. EUR/GBP is consolidating and remains at risk of more downsides below 0.8545.

Important Takeaways for GBP/USD and EUR/GBP Analysis Today

  • The British Pound started a steady increase above the 1.2805 resistance.
  • There is a short-term contracting triangle forming with resistance near 1.2860 on the hourly chart of GBP/USD at FXOpen.
  • EUR/GBP declined below the 0.8600 and 0.8580 support levels.
  • There is a key breakout pattern forming with support near 0.8560 on the hourly chart at FXOpen.

GBP/USD Technical Analysis

On the hourly chart of GBP/USD at FXOpen, the pair started a fresh decline from the 1.3000 zone. As mentioned in the previous analysis, the British Pound would remain at risk of more downsides if it cleared the 1.2840 and 1.2805 levels against the US Dollar.

The pair extended its decline and tested the 1.2770 zone. A low is formed near 1.2762, and the pair is now attempting a fresh increase. There was a move above the 23.6% Fib retracement level of the downward move from the 1.2995 swing high to the 1.2762 low.

The pair is now consolidating below the 50-hour simple moving average. The GBP/USD chart indicates that the pair is facing resistance near a short-term contracting triangle at 1.2860.

The next major resistance is near the 50% Fib retracement level of the downward move from the 1.2995 swing high to the 1.2762 low at 1.2880. The main breakout zone could be 1.2900. If the RSI moves above 60 and the pair climbs above 1.2900, there could be another rally. In the stated case, the pair could rise toward the 1.3000 level or even 1.3050.

On the downside, there is a major support forming near 1.2805. If there is a downside break below it, the pair could accelerate lower.

The next major support is near the 1.2770 zone, below which GBP/USD could test 1.2740. Any more losses could lead the pair toward 1.2650.

EUR/GBP Technical Analysis

On the hourly chart of EUR/GBP at FXOpen, the pair started a fresh decline from the 0.8640 resistance. The Euro traded below the 0.8600 support and moved 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 0.8580. A low is formed near 0.8545, and the pair is now consolidating losses. The RSI is stuck near 50.

Immediate resistance is near a key breakout pattern at 0.8575. It coincides with the 61.8% Fib retracement level of the downward move from the 0.8599 swing high to the 0.8549 low.

The next major resistance for the bulls is near the 76.4% Fib retracement level of the downward move from the 0.8599 swing high to the 0.8549 low at 0.8580. A close above the 0.8580 level might accelerate gains.

In the stated case, the bulls may perhaps aim for a test of 0.8600. Any more gains might send the pair toward the 0.8640 level.

If there is no move below 0.8580, EUR/GBP could continue to move down. Immediate support sits at 0.8560. The next major support is near 0.8545. A downside break below 0.8545 might call for more downsides. In the stated case, the pair could drop toward the 0.8500 support level.

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