Market Analysis: GBP/USD Recovers While EUR/GBP Dives Below Support

FXOpen

GBP/USD is attempting a recovery wave above the 1.2690 resistance. EUR/GBP declined steadily below the 0.8585 and 0.8570 support levels.

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

· The British Pound is attempting a fresh increase above 1.2650.

· There is a key contracting triangle forming with support near 1.2690 on the hourly chart of GBP/USD at FXOpen.

· EUR/GBP is trading in a bearish zone below the 0.8585 pivot level.

· There is a connecting bearish trend line forming with resistance near 0.8570 on the hourly chart at FXOpen.

GBP/USD Technical Analysis

On the hourly chart of GBP/USD at FXOpen, the pair declined after it failed to clear the 1.2800 resistance. As mentioned in the previous analysis, the British Pound even traded below the 1.2715 support against the US Dollar.

Finally, the pair tested the 1.2600 zone and is currently attempting a fresh increase. The bulls were able to push the pair above the 50-hour simple moving average and 1.2740. The pair even climbed above the 50% Fib retracement level of the downward move from the 1.2785 swing high to the 1.2596 low.

On the upside, the GBP/USD chart indicates that the pair is facing resistance near 1.2715. It coincides with the 61.8% Fib retracement level of the downward move from the 1.2785 swing high to the 1.2596 low.

The next major resistance is near 1.27640. A close above the 1.2740 resistance zone could open the doors for a move toward 1.2790. Any more gains might send GBP/USD toward 1.2840.

On the downside, there is a key support forming near a contracting triangle at 1.2690. If there is a downside break below 1.2690, the pair could accelerate lower. The first major support is near the 1.2640 level.

The next key support is seen near 1.2600, below which the pair could test 1.2550. 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 major decline from well above 0.8600. The Euro traded below the 0.8585 and 0.8575 support levels against the British Pound.

The EUR/GBP chart suggests that the pair even declined below the 0.8570 level and tested 0.8555. It is now consolidating losses and trading below the 50-hour simple moving average. The pair is now facing resistance near a connecting bearish trend line at 0.8570.

It is close to the 23.6% Fib retracement level of the downward move from the 0.8618 swing high to the 0.8554 low. The next major resistance could be 0.8575 and the 50-hour simple moving average.

The main resistance is near the 50% Fib retracement level of the downward move from the 0.8618 swing high to the 0.8554 low at 0.8585. A close above the 0.8585 level might accelerate gains. In the stated case, the bulls may perhaps aim for a test of 0.8620. Any more gains might send the pair toward the 0.8650 level.

Immediate support sits near 0.8555. The next major support is near 0.8540. A downside break below the 0.8540 support might call for more downsides. In the stated case, the pair could drop toward the 0.8500 support level.

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