Market Analysis: GBP/USD Bounces Back As EUR/GBP Awaits Catalyst

GBP/USD is attempting a recovery wave above 1.3100. EUR/GBP is consolidating and might aim for a fresh increase above 0.8800.

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

· The British Pound is attempting a fresh increase above 1.3120.

· There was a break above a bearish trend line with resistance at 1.3070 on the hourly chart of GBP/USD at FXOpen.

· EUR/GBP is trading in a positive zone above the 0.8750 pivot level.

· There is a short-term declining channel forming with resistance near 0.8805 on the hourly chart at FXOpen.

GBP/USD Technical Analysis

On the hourly chart of GBP/USD at FXOpen, the pair declined after it failed to clear 1.3370. As mentioned in the previous analysis, the British Pound even traded below 1.3250 against the US Dollar.

Finally, the pair tested the 1.3000 zone and is currently attempting a fresh increase. The bulls were able to push the pair above the 50-hour simple moving average and 1.3080. The pair even climbed above a bearish trend line with resistance at 1.3070.

The bulls were able to push the pair above the 23.6% Fib retracement level of the downward move from the 1.3369 swing high to the 1.3009 low.

On the upside, the GBP/USD chart indicates that the pair is facing hurdles near 1.3180. The next major barrier could be near the 50% Fib retracement at 1.3190. A close above 1.3190 could open the doors for a move toward 1.3285. Any more gains might send GBP/USD toward 1.3370.

On the downside, there is decent support forming at 1.3095. If there is a downside break below 1.3095, the pair could accelerate lower. The first area of interest might be near 1.3010, below which the pair could test 1.2950. Any more losses could lead the pair toward 1.2880.

EUR/GBP Technical Analysis

On the hourly chart of EUR/GBP at FXOpen, the pair started a consolidation phase after it failed to surpass 0.8830. The Euro traded below 0.8800 and 0.8790 against the British Pound.

The EUR/GBP chart suggests that the pair even tested 0.8775. A low was formed at 0.8773 and the pair is now correcting some losses. It climbed above the 23.6% Fib retracement level of the downward move from the 0.8816 swing high to the 0.8773 low.

The pair is now facing resistance near 0.8795 and the 50-hour simple moving average. The next hurdle sits at 0.8805. There is also a short-term declining channel forming with resistance near 0.8805. It coincides with the 76.4% Fib retracement.

A close above the 0.8805 level might accelerate gains. In the stated case, the bulls may perhaps aim for a test of 0.8830. Any more gains might send the pair toward 0.8850.

Immediate support sits near 0.8770. The next area of interest for the bulls might be 0.8760. A downside break below 0.8760 might call for more downsides. In the stated case, the pair could drop toward 0.8720.

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