GBP/USD is attempting a fresh increase from the 1.2745 zone. EUR/GBP is gaining pace and might extend its rally above the 0.8550 zone.

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

· The British Pound is attempting a recovery above the 1.2780 zone against the US Dollar.

· There was a break above a key bearish trend line with resistance at 1.2790 on the hourly chart of GBP/USD at FXOpen.

· EUR/GBP started a fresh increase above the 0.8535 resistance zone.

· There is a major bullish trend line forming with support near 0.8535 on the hourly chart at FXOpen.

GBP/USD Technical Analysis

On the hourly chart of GBP/USD at FXOpen, the pair started a fresh decline from the 1.2890 zone. The British Pound traded below the 1.2820 zone against the US Dollar.

A low was formed near 1.2746 and the pair is now attempting a recovery wave. There was a break above the 23.6% Fib retracement level of the downward move from the 1.2893 swing high to the 1.2746 low.

There was a break above a key bearish trend line with resistance at 1.2790, but the pair is still below the 50-hour simple moving average. On the upside, the GBP/USD chart indicates that the pair is facing resistance near 1.2800.

The next major resistance is near the 1.2820 level or the 50% Fib retracement level of the downward move from the 1.2893 swing high to the 1.2746 low. If the RSI moves above 50 and the pair climbs above 1.2820, there could be another rally. In the stated case, the pair could rise toward the 1.2890 level or even 1.2920.

On the downside, there is a major support forming near 1.2745. If there is a downside break below the 1.2745 support, the pair could accelerate lower. The next major support is near the 1.2700 zone, below which the pair could test 1.2665. Any more losses could lead the pair toward the 1.2550 support.

EUR/GBP Technical Analysis

On the hourly chart of EUR/GBP at FXOpen, the pair started a fresh increase from the 0.8500 zone. The Euro traded above the 0.8525 level to move into a positive zone against the British Pound.

The EUR/GBP chart suggests that the pair settled above the 50-hour simple moving average and 0.8535. There was a clear move above the 50% Fib retracement level of the downward move from the 0.8562 swing high to the 0.8503 low.

Immediate resistance is near 0.8550 or the 76.4% Fib retracement level of the downward move from the 0.8562 swing high to the 0.8503 low.

The next major resistance for the bulls is near the 0.8565 zone. A close above the 0.8565 level might accelerate gains. In the stated case, the bulls may perhaps aim for a test of 0.8600. Any more gains might send the pair toward the 0.8650 level in the coming days.

Immediate support sits near a major bullish trend line or 0.8535. The next major support is near the 0.8525 zone. A downside break below the 0.8525 support might call for more downsides.

In the stated case, the pair could drop toward the 0.8500 support level. Any more losses might send the pair toward the 0.8460 level in the near term.

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