Market Analysis: GBP/USD Recovers While EUR/GBP Struggles

GBP/USD is attempting a recovery wave above the 1.2950 resistance. EUR/GBP declined steadily below the 0.8330 and 0.8325 support levels.

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

· The British Pound is attempting a fresh increase above 1.2950.

· There is a key rising channel forming with support near 1.2980 on the hourly chart of GBP/USD at FXOpen.

· EUR/GBP is trading in a bearish zone below the 0.8350 pivot level.

· There is a connecting bearish trend line forming with resistance near 0.8330 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 1.3120 resistance. As mentioned in the previous analysis, the British Pound even traded below the 1.3000 support against the US Dollar.

Finally, the pair tested the 1.2910 zone and is currently attempting a fresh increase. The bulls were able to push the pair above the 50-hour simple moving average and 1.2950. The pair even climbed above the 50% Fib retracement level of the downward move from the 1.3071 swing high to the 1.2907 low.

On the upside, the GBP/USD chart indicates that the pair is facing resistance near 1.3015. It coincides with the 61.8% Fib retracement level of the downward move from the 1.3071 swing high to the 1.2907 low.

The next major resistance is near 1.3040. A close above the 1.3040 resistance zone could open the doors for a move toward 1.3070. Any more gains might send GBP/USD toward 1.3120.

On the downside, there is a key support forming near a rising channel at 1.2980. If there is a downside break below 1.2980, the pair could accelerate lower. The first major support is near the 1.2940 level.

The next key support is seen near 1.2910, below which the pair could test 1.2880. Any more losses could lead the pair toward the 1.2845 support.

EUR/GBP Technical Analysis

On the hourly chart of EUR/GBP at FXOpen, the pair started a fresh decline from well above 0.8400. The Euro traded below the 0.8350 and 0.8330 support levels against the British Pound.

The EUR/GBP chart suggests that the pair even declined below the 0.8310 level and tested 0.8300. It is now consolidating losses and trading below the 50-hour simple moving average. The pair is now facing resistance near the 61.8% Fib retracement level of the downward move from the 0.8350 swing high to the 0.8298 low.

The next major resistance could be 0.8300, a connecting bearish trend line, and the 50-hour simple moving average. It coincides with the 76.4% Fib retracement level of the downward move from the 0.8350 swing high to the 0.8298 low.

The main resistance is near the 0.8350 zone. A close above the 0.8350 level might accelerate gains. In the stated case, the bulls may perhaps aim for a test of 0.8400. Any more gains might send the pair toward the 0.8420 level.

Immediate support sits near 0.8310. The next major support is near 0.8300. A downside break below the 0.8265 support might call for more downsides. In the stated case, the pair could drop toward the 0.8220 support level.