Market Analysis: GBP/USD Builds Momentum While EUR/GBP Dips Once More

GBP/USD is showing positive signs above 1.3500 and 1.3525. EUR/GBP declined and is now consolidating losses below 0.8700.

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

· The British Pound started a fresh increase above 1.3500 to enter a positive zone.

· There was a break above a key bearish trend line with resistance at 1.3510 on the hourly chart of GBP/USD at FXOpen.

· EUR/GBP is trading in a bearish zone below the 0.8685 pivot level.

· There is a connecting bearish trend line forming with resistance near 0.8665 on the hourly chart at FXOpen.

GBP/USD Technical Analysis

On the hourly chart of GBP/USD at FXOpen, the pair remained well-bid above 1.3450. The British Pound started a decent increase above 1.3470 against the US Dollar.

The bulls were able to push the pair above the 50-hour simple moving average and 1.3500. The pair even climbed above a key bearish trend line with resistance at 1.3510. A high was formed at 1.3548, and the pair is now consolidating gains above the 23.6% Fib retracement level of the upward move from the 1.3447 swing low to the 1.3548 high.

On the upside, the GBP/USD chart indicates that the pair is facing resistance near 1.3550. The next hurdle for the bulls could be 1.3565. A close above 1.3565 could open the doors for a move toward 1.3600. Any more gains might send GBP/USD toward 1.3660.

On the downside, the bulls might remain active near 1.3525. If there is a downside break below 1.3525, the pair could accelerate lower. The first major support is at 1.3495 and the 50% Fib retracement, below which the pair could test 1.3470.

The next key area for the bulls could be 1.3445, below which the pair could test 1.3400. Any more losses could lead the pair toward 1.3350.

EUR/GBP Technical Analysis

On the hourly chart of EUR/GBP at FXOpen, the pair started a steady decline from well above 0.8720. The Euro traded below 0.8695 against the British Pound.

The EUR/GBP chart suggests that the pair even declined below 0.8670 and the 50-hour simple moving average. A low was formed at 0.8650, and the pair is now consolidating losses. There was a move above 0.8665 and toward the 23.6% Fib retracement level of the downward move from the 0.8720 swing high to the 0.8650 low.

The pair is now facing resistance near a connecting bearish trend line at 0.8665. The next major barrier for the bulls could be 0.8685 and the 50% Fib retracement.

A close above 0.8685 might accelerate gains. In the stated case, the bulls may perhaps aim for a test of 0.8695. Any more gains might send the pair toward the 0.8720 pivot.

Immediate support sits near 0.8650. The first key zone sits at 0.8620. A downside break below 0.8620 might call for more downsides. In the stated case, the pair could drop toward 0.8565.

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