Market Analysis: GBP/USD Rallies While EUR/GBP Slides Below Support

FXOpen

GBP/USD is gaining pace above the 1.2575 resistance. EUR/GBP declined heavily below the 0.8720 and 0.8695 support levels.

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

· The British Pound is attempting a fresh increase above 1.2600.

· There is a key bullish trend line forming with support near 1.2575 on the hourly chart of GBP/USD at FXOpen.

· EUR/GBP is trading in a bearish zone below the 0.8720 pivot level.

· There is a major bearish trend line forming with resistance near 0.8695 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 the 1.2450 level. As mentioned in the previous analysis, the British Pound started a decent increase above the 1.2500 zone against the US Dollar.

The bulls were able to push the pair above the 50-hour simple moving average and 1.2530. The pair even climbed above 1.2575 and traded as high as 1.2615. It is now consolidating gains above the 23.6% Fib retracement level of the upward move from the 1.2449 swing low to the 1.2615 high.

On the upside, the GBP/USD chart indicates that the pair is facing resistance near 1.2615. The next major resistance is near 1.2640.

A close above the 1.2640 resistance zone could open the doors for a move toward 1.2700. Any more gains might send GBP/USD toward 1.2740.

On the downside, there is a key support forming near a bullish trend line at 1.2575. If there is a downside break below 1.2575, the pair could accelerate lower. The next major support is near the 50% Fib retracement level of the upward move from the 1.2449 swing low to the 1.2615 high at 1.2530.

The next key support is seen near 1.2510, below which the pair could test 1.2450. Any more losses could lead the pair toward the 1.2370 support.

EUR/GBP Technical Analysis

On the hourly chart of EUR/GBP at FXOpen, the pair started a major decline from well above 0.8745. The Euro traded below the 0.8720 and 0.8700 support levels against the British Pound.

The EUR/GBP chart suggests that the pair even declined below the 0.8695 level and tested 0.8675. It is now consolidating losses and trading below the 50-hour simple moving average. The pair is now facing resistance near a major bearish trend line at 0.8695.

It is close to the 23.6% Fib retracement level of the downward move from the 0.8765 swing high to the 0.8672 low. The next major resistance could be 0.8720.

The 50% Fib retracement level of the downward move from the 0.8765 swing high to the 0.8672 low is also at 0.8720. A close above the 0.8720 level might accelerate gains. In the stated case, the bulls may perhaps aim for a test of 0.8745. Any more gains might send the pair toward the 0.8765 level.

Immediate support sits near 0.8675. The next major support is near 0.8650. A downside break below the 0.8650 support might call for more downsides. In the stated case, the pair could drop toward the 0.8600 support level.

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