GBP/USD jumped above the 1.2650 and 1.2690 resistance levels. EUR/GBP declined and now trading below the 0.8595 resistance.
Important Takeaways for GBP/USD and EUR/GBP Analysis Today
· The British Pound is trading in a bullish zone above 1.2650 against the US Dollar.
· There was a break above a key bearish trend line with resistance near 1.2650 on the hourly chart of GBP/USD at FXOpen.
· EUR/GBP started a fresh decline from the 0.8660 resistance zone.
· There is a major bearish trend line forming with resistance near 0.8595 on the hourly chart at FXOpen.
GBP/USD Technical Analysis
On the hourly chart of GBP/USD at FXOpen, the pair started a fresh increase from the 1.2600 support zone. The British Pound climbed above the 1.2650 resistance zone against the US Dollar.
The bulls were able to pump the pair above 1.2690 and the 50-hour simple moving average. The pair settled above the 61.8% Fib retracement level of the downward move from the 1.2759 swing high to the 1.2591 low.
Finally, the pair climbed above 1.2700 but struggled to clear the 1.2720 resistance zone. The pair is now consolidating above 1.2690. The GBP/USD chart indicates that the pair is facing resistance near the 76.4% Fib retracement level of the downward move from the 1.2759 swing high to the 1.2591 low at 1.2720.
The next major resistance is near the 1.2745 level. If the RSI moves above 70 and the pair climbs above 1.2745, there could be another rally. In the stated case, the pair could rise toward the 1.2800 level or even 1.2840.
On the downside, there is a major support forming near the 50-hour simple moving average at 1.2650. If there is a downside break below the 1.2650 support, the pair could accelerate lower.
The next major support is near the 1.2600 zone, 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 fresh decline from the 0.8660 resistance. The Euro traded below the 0.8620 support to move into a bearish zone against the British Pound.
The EUR/GBP chart suggests that the pair settled below the 50-hour simple moving average and 0.8595. A low is formed near 0.8576 and the pair is now consolidating losses. The RSI is attempting a recovery toward 50.
Immediate resistance is near a major bearish trend line at 0.8595. It coincides with the 23.6% Fib retracement level of the downward move from the 0.8658 swing high to the 0.8576 low.
The next major resistance for the bulls is near the 60% Fib retracement level of the downward move from the 0.8658 swing high to the 0.8576 low at 0.8620. A close above the 0.8620 level might accelerate gains.
In the stated case, the bulls may perhaps aim for a test of 0.8660. Any more gains might send the pair toward the 0.8720 level.
If there is no move above 0.8595, the pair could continue to move down. Immediate support sits at 0.8575. The next major support is near 0.8550. A downside break below the 0.8550 support might call for more downsides. In the stated case, the pair could drop toward the 0.8500 support level.
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