Market Analysis: GBP/USD Struggles While EUR/GBP Aims Higher

FXOpen

GBP/USD is struggling to gain pace above the 1.2800 resistance. EUR/GBP is rising and might rise above the 0.8650 resistance.

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

· The British Pound is attempting a fresh increase above 1.2680.

· There was a break above a key bearish trend line with resistance near 1.2725 on the hourly chart of GBP/USD at FXOpen.

· EUR/GBP is rising and trading above the 0.8600 zone.

· There is a major bullish trend line forming with support near 0.8625 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 1.2880 zone. As mentioned in the previous analysis, the British Pound extended losses below the 1.2800 pivot level against the US Dollar.

The pair even tested the 1.2620 support zone. A low was formed near 1.2620 and the pair is now attempting a fresh increase. There was a move above the 1.2680 resistance zone. Besides, there was a break above a key bearish trend line with resistance near 1.2725.

However, the pair struggled to clear the 1.2800 resistance zone. A high is formed near 1.2792 and the pair is now correcting gains. It is trading near the 50-hour simple moving average at 1.2725 and approaching the 50% Fib retracement level of the upward move from the 1.2620 swing low to the 1.2792 high.

On the downside, there is a key support forming near 1.2680. It is close to the 61.8% Fib retracement level of the upward move from the 1.2620 swing low to the 1.2792 high.

If there is a downside break below the 1.2680 support, the pair could accelerate lower. The next major support is near the 1.2620 zone, below which the pair could test 1.2550. Any more losses could lead the pair toward the 1.2500 support.

On the upside, the GBP/USD chart indicates that the pair is facing resistance near 1.2750. The next major resistance is near the 1.2800 zone. A close above the 1.2800 resistance zone could open the doors for a move toward 1.2880.

EUR/GBP Technical Analysis

On the hourly chart of EUR/GBP at FXOpen, the pair started a steady increase from the 0.8555 zone. The Euro traded above the 0.8600 pivot level to enter a positive zone against the British Pound.

The EUR/GBP chart suggests that the pair settled above the 50-hour simple moving average and 0.8625. A high is formed near 0.8647 and the pair is now consolidating gains. It traded below the 23.6% Fib retracement level of the upward move from the 0.8601 swing low to the 0.8647 high.

Immediate support sits near a bullish trend line at 0.8625. It is close to the 50% Fib retracement level of the upward move from the 0.8601 swing low to the 0.8647 high.

The next major support is near 0.8600. A downside break below the 0.8600 support might call for more downsides. In the stated case, the pair could drop toward the 0.8555 support level.

Immediate resistance is near 0.8650. The next major resistance could be 0.8675. A close above the 0.8675 level might accelerate gains. In the stated case, the bulls may perhaps aim for a test of 0.8700. Any more gains might send the pair toward the 0.8740 level.

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