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

GBP/USD is eyeing a key upside break above the 1.2470 resistance zone. EUR/GBP is now consolidating losses above the 0.8825 support.

Important Takeaways for GBP/USD and EUR/GBP

· The British Pound is slowly moving higher from the 1.2365 support against the US Dollar.

· There is a key bearish trend line forming with resistance near 1.2440 on the hourly chart of GBP/USD at FXOpen.

· EUR/GBP started a downside correction from the 0.8860 resistance zone.

· There is a major bullish trend line forming with support near 0.8825 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 1.2365 zone. The British Pound formed a base and started a decent increase above the 1.2400 resistance against the US Dollar.

The pair even spiked above 1.2440 and the 50-hour simple moving average. However, upsides remained capped near the 1.2470 zone. The pair is now consolidating near the 50-hour simple moving average and the 23.6% Fib retracement level of the upward move from the 1.2367 swing low to the 1.2451 high.

On the downside, there is a major support forming near the 61.8% Fib retracement level of the upward move from the 1.2367 swing low to the 1.2451 high at 1.2400.

The next major support is near the 1.2365 level. If there is a downside break below the 1.2365 support, there is a risk of a sharp decline. In the stated case, GBP/USD may perhaps revisit the 1.2300 support. Any more losses could lead the pair toward the 1.2250 support.

On the upside, resistance is near a key bearish trend line at 1.2440. The pair might attempt a fresh increase if the RSI stays above 50. The next major resistance is near the 1.2470 level. A clear move above the 1.2470 level could spark a rally toward the 1.2540 level.

EUR/GBP Technical Analysis

On the hourly chart of EUR/GBP at FXOpen, the pair started a decent increase above the 0.8825 resistance. The Euro climbed higher toward the 0.8860 resistance against the British Pound.

It traded as high as 0.8861 and recently started a downside correction. There was a move below the 23.6% Fib retracement level of the upward move from the 0.8791 swing low to the 0.8861 high.

It is now consolidating losses, with immediate support near the 50% Fib retracement level of the upward move from the 0.8791 swing low to the 0.8861 high at 0.8826. There is also a major bullish trend line forming with support near 0.8825.

The next major support is near 0.8810. A downside break below the 0.8810 support might call for more downsides. In the stated case, the pair could decline toward the 0.8795 support level. Any more losses could open the doors for a move to 0.8720.

Conversely, the bulls could remain active above the 0.8825 support. Immediate resistance is near the 0.8845 level. The next major resistance for the bulls is near the 0.8860 level.

A close above the 0.8860 level might accelerate gains. In the stated case, the bulls may perhaps aim for a test of 0.8900. Any more gains might send the pair toward the 0.8920 level.

This article represents FXOpen Companies’ opinion only, it should not be construed as an offer, invitation, or recommendation with respect to FXOpen Companies’ products and services or as financial advice.