Market Analysis: GBP/USD Rallies above 1.2800 While EUR/GBP Struggles

GBP/USD rallied above the 1.2765 and 1.2800 resistance levels. EUR/GBP declined and now trading below the 0.8565 resistance.

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

· The British Pound is trading in a bullish zone above 1.2700 against the US Dollar.

· There is a key bullish trend line forming with support near 1.2765 on the hourly chart of GBP/USD at FXOpen.

· EUR/GBP started a fresh decline from the 0.8590 resistance zone.

· There is a major bearish trend line forming with resistance near 0.8540 on the hourly chart at FXOpen.

GBP/USD Technical Analysis

On the hourly chart of GBP/USD at FXOpen, the pair started a major increase from the 1.2500 support zone. The British Pound climbed above the 1.2625 resistance zone against the US Dollar.

The bulls were able to pump the pair above 1.2765 and the 50-hour simple moving average. Finally, the pair climbed above 1.2800 and tested 1.2845. A high is formed near 1.2847 and the pair is now consolidating gains.

It is trading above the 23.6% Fib retracement level of the upward move from the 1.2629 swing low to the 1.2847 high. The GBP/USD chart indicates that the pair is facing resistance near the 1.2845 level.

The next major resistance is near the 1.2880 level. If the RSI moves above 60 and the pair climbs above 1.2880, there could be another rally. In the stated case, the pair could rise toward the 1.2950 level or even 1.3000.

On the downside, there is a major support forming near a trend line at 1.2765 and the 50-hour simple moving average. If there is a downside break below the 1.2765 support, the pair could accelerate lower.

The next major support is near the 61.8% Fib retracement level of the upward move from the 1.2629 swing low to the 1.2847 high or 1.2700, below which the pair could test 1.2625. Any more losses could lead the pair toward the 1.2500 support.

EUR/GBP Technical Analysis

On the hourly chart of EUR/GBP at FXOpen, the pair started a fresh decline from the 0.8590 resistance. The Euro traded below the 0.8565 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 0.8540. A low is formed near 0.8522 and the pair is now showing a few bearish signs. The RSI is moving lower toward the 35 level.

Immediate resistance is near a major bearish trend line at 0.8540. It coincides with the 23.6% Fib retracement level of the downward move from the 0.8591 swing high to the 0.8522 low.

The next major resistance for the bulls is near the 61.8% Fib retracement level of the downward move from the 0.8591 swing high to the 0.8522 low at 0.8565. A close above the 0.8565 level might accelerate gains.

In the stated case, the bulls may perhaps aim for a test of 0.8590. Any more gains might send the pair toward the 0.8650 level.

If there is no move above 0.8540, the pair could continue to move down. Immediate support sits at 0.8520. The next major support is near 0.8500.

A downside break below the 0.8500 support might call for more downsides. In the stated case, the pair could drop toward the 0.8440 support level.