Market Analysis: GBP/USD Eyes Bullish Breakout While EUR/GBP Consolidates Losses

GBP/USD is gaining bullish momentum above the 1.2600 resistance zone. EUR/GBP is now consolidating losses below the 0.8740 resistance.

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

· The British Pound is showing a lot of bullish signs above the 1.2600 pivot level against the US Dollar.

· There is a key bullish trend line forming with support near 1.2600 on the hourly chart of GBP/USD at FXOpen.

· EUR/GBP started a fresh decline from the 0.8835 resistance zone.

· There is a major bearish trend line forming with resistance near 0.8740 on the hourly chart at FXOpen.

GBP/USD Technical Analysis

On the hourly chart of GBP/USD at FXOpen, the pair found support near the 1.2440 zone. The British Pound started a decent increase above the 1.2500 resistance against the US Dollar.

The pair gained bullish momentum above the 1.2550 resistance and climbed above the 50-hour simple moving average. A high is formed near 1.2653 and the pair is now consolidating gains above the 23.6% Fib retracement level of the upward move from the 1.2557 swing low to the 1.2653 high.

On the downside, there is a major support forming near the 50-hour simple moving average at 1.2600. There is also a key bullish trend line forming along with the 50% Fib retracement level of the upward move from the 1.2557 swing low to the 1.2653 high.

If there is a downside break below the 1.2600 support, the pair could accelerate lower. The next major support is near the 1.2550 level, below which the pair could test 1.2500. In the stated case, GBP/USD may perhaps revisit the 1.2440 support. Any more losses could lead the pair toward the 1.2350 support.

On the upside, resistance is near the 1.2650 zone. The next major resistance is near the 1.2700 level. A clear move above the 1.2700 level could spark a rally toward the 1.2840 level considering the current RSI position on the GBP/USD chart.

EUR/GBP Technical Analysis

On the hourly chart of EUR/GBP at FXOpen, the pair started a steady decline from the 0.8835 resistance. The Euro traded below the 0.8775 support to move 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 0.8740. A low is formed near 0.8712 and the pair is slowly moving higher. The hourly RSI is also moving higher toward 45.

Immediate resistance is near a major bearish trend line at 0.8740. It coincides with the 23.6% Fib retracement level of the downward move from the 0.8835 swing high to the 0.8710 low.

The next major resistance for the bulls is near the 50% Fib retracement level of the downward move from the 0.8835 swing high to the 0.8710 low at 0.8775. A close above the 0.8775 level might accelerate gains.

In the stated case, the bulls may perhaps aim for a test of 0.8835. Any more gains might send the pair toward the 0.8875 level.

If there is no move above 0.8740, the pair could decline again. Immediate support sits at 0.8710. The next major support is near 0.8680. A downside break below the 0.8680 support might call for more downsides. In the stated case, the pair could decline toward the 0.8640 support level.

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