Market Analysis: GBP/USD Dips Further As EUR/GBP Regains Traction

GBP/USD failed to climb above 1.3500 and corrected some gains. EUR/GBP started a decent increase and might aim for more gains above 0.8700.

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

· The British Pound is showing bearish signs below the 1.3400 support.

· There is a key bearish trend line forming with resistance near 1.3280 on the hourly chart of GBP/USD at FXOpen.

· EUR/GBP is gaining pace and trading above the 0.8660 pivot level.

· There is a connecting bullish trend line forming with support at 0.8670 on the hourly chart at FXOpen.

GBP/USD Technical Analysis

On the hourly chart of GBP/USD at FXOpen, the pair failed to stay above the 1.3450 pivot level. As a result, the British Pound started a fresh decline below 1.3400 against the US Dollar.

There was a clear move below 1.3340 and the 50-hour simple moving average. The bears pushed the pair below 1.3250. Finally, there was a spike toward the 1.3200 handle. A low was formed near 1.3202, and the pair is now consolidating losses.

There was a minor move above 1.3240 and the 23.6% Fib retracement level of the downward move from the 1.3479 swing high to the 1.3202 low. On the upside, the GBP/USD chart indicates that the pair is facing resistance near a key bearish trend line at 1.3280.

A close above the trend line might send the pair toward the 50% Fib retracement at 1.3340. If the bulls remain in action, they could aim for more gains.

In the stated case, the pair might rise toward 1.3415. The next major hurdle for GBP/USD sits at 1.3480. On the downside, there is a key support forming near 1.3200. If there is a downside break below 1.3200, the pair could accelerate lower. The next key interest area might be 1.3160, below which the pair could test 1.3120. Any more downside could lead the pair toward 1.3050.

EUR/GBP Technical Analysis

On the hourly chart of EUR/GBP at FXOpen, the pair started a decent increase from 0.8635. The Euro traded above 0.8650 to enter a positive zone against the British Pound.

The pair settled above the 50-hour simple moving average and 0.8660. The pair traded as high as 0.8687 before there was a minor pullback, but the pair stayed above the 23.6% Fib retracement level of the upward move from the 0.8636 swing low to the 0.8687 high.

However, the pair is stable above 0.8670. Besides, there is a connecting bullish trend line forming with support at 0.8670.

A downside break below 0.8670 might call for more downsides. In the stated case, the pair could drop toward the 50% Fib retracement level at 0.8660. Any more losses might call for an extended drop toward the 0.8635 pivot zone.

If there is another increase, the EUR/GBP chart suggests that the pair is facing hurdles near 0.8685. A close above 0.8685 might accelerate gains. In the stated case, the bulls may perhaps aim for a test of 0.8700. Any more gains might send the pair to 0.8740.