Market Analysis: GBP/USD Recovers While EUR/GBP Eyes Gains

GBP/USD is attempting a fresh increase from the 1.3090 zone. EUR/GBP is gaining pace and might extend its upward move above the 0.8440 zone.

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

· The British Pound is attempting a recovery above the 1.3130 zone against the US Dollar.

· There was a break above a key bearish trend line with resistance at 1.3120 on the hourly chart of GBP/USD at FXOpen.

· EUR/GBP started a fresh increase above the 0.8420 resistance zone.

· There is a major rising channel forming with support near 0.8425 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 1.3265 zone. The British Pound traded below the 1.3200 zone against the US Dollar.

A low was formed near 1.3090 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 1.3266 swing high to the 1.3088 low.

There was a break above a key bearish trend line with resistance at 1.3120, and the pair settled above the 50-hour simple moving average. On the upside, the GBP/USD chart indicates that the pair is facing resistance near 1.3175, and the 50% Fib retracement level of the downward move from the 1.3266 swing high to the 1.3088 low.

The next major resistance is near the 1.3225 level. If the RSI moves above 60 and the pair climbs above 1.3225, there could be another rally. In the stated case, the pair could rise toward the 1.3265 level or even 1.3320.

On the downside, there is a major support forming near 1.3150. If there is a downside break below the 1.3150 support, the pair could accelerate lower. The next major support is near the 1.3090 zone, below which the pair could test 1.3020. Any more losses could lead the pair toward the 1.3000 support.

EUR/GBP Technical Analysis

On the hourly chart of EUR/GBP at FXOpen, the pair started a fresh increase from the 0.8400 zone. The Euro traded above the 0.8420 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 0.8440. There was a clear move above the 50% Fib retracement level of the downward move from the 0.8467 swing high to the 0.8399 low.

Immediate resistance is near 0.8440 or the 61.8% Fib retracement level of the downward move from the 0.8467 swing high to the 0.8399 low.

The next major resistance for the bulls is near the 0.8450 zone. A close above the 0.8450 level might accelerate gains. In the stated case, the bulls may perhaps aim for a test of 0.8465. Any more gains might send the pair toward the 0.8500 level in the coming days.

Immediate support sits near a key rising channel at 0.8425. The next major support is near the 0.8400 zone. A downside break below the 0.8400 support might call for more downsides.

In the stated case, the pair could drop toward the 0.8365 support level. Any more losses might send the pair toward the 0.8340 level in the near term.