Market Analysis: GBP/USD Retreats From Highs As EUR/GBP Enters Holding Pattern

GBP/USD is showing positive signs above 1.3580 and 1.3620. EUR/GBP declined and is now consolidating losses below 0.8700.

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

· The British Pound rallied above 1.3700 and 1.3800 before there was a pullback.

· There is a connecting bearish trend line forming with resistance at 1.3760 on the hourly chart of GBP/USD at FXOpen.

· EUR/GBP is trading in a bearish zone below the 0.8690 pivot level.

· There is a key expanding triangle forming with resistance near 0.8680 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 1.3500. The British Pound started a decent increase above 1.3650 against the US Dollar.

The bulls were able to push the pair above the 50-hour simple moving average and 1.3750. The pair even climbed above 1.3800 and traded as high as 1.3869. Recently, there was a pullback below 1.3760 and the 23.6% Fib retracement level of the upward move from the 1.3401 swing low to the 1.3869 high.

The pair is now consolidating below 1.3750. There is also a connecting bearish trend line forming with resistance at 1.3760. On the upside, the GBP/USD chart indicates that the pair is facing resistance near 1.3725.

The next hurdle for the bulls could be 1.3760. A close above 1.3760 could open the doors for a move toward 1.3870. Any more gains might send GBP/USD toward 1.4000.

On the downside, the bulls might remain active near the 50% Fib retracement at 1.3635. If there is a downside break below 1.3635, the pair could accelerate lower. The first major support is at 1.3510, below which the pair could test 1.3480.

The next key area for the bulls could be 1.3400, below which the pair could test 1.3320. Any more losses could lead the pair toward 1.3250.

EUR/GBP Technical Analysis

On the hourly chart of EUR/GBP at FXOpen, the pair started a steady decline from well above 0.8725. The Euro traded below 0.8690 against the British Pound.

The EUR/GBP chart suggests that the pair even declined below 0.8660 and the 50-hour simple moving average. A low was formed at 0.8641, and the pair is now consolidating losses. There was a move above 0.8650 and the 23.6% Fib retracement level of the downward move from the 0.8716 swing high to the 0.8641 low.

The pair is now facing resistance near a key expanding triangle at 0.8680 and the 50% Fib retracement. The next major barrier for the bulls could be 0.8690.

A close above 0.8690 might accelerate gains. In the stated case, the bulls may perhaps aim for a test of 0.8715. Any more gains might send the pair toward the 0.8725 pivot.

Immediate support sits near 0.8650. The first key zone sits at 0.8640. A downside break below 0.8640 might call for more downsides. In the stated case, the pair could drop toward 0.8600.