GBP/USD is attempting a recovery wave above the 1.3220 resistance. EUR/GBP is declining and is gaining pace below the 0.8550 level.
Important Takeaways for GBP/USD and EUR/GBP
· The British Pound is facing resistance near the 1.3280 and 1.3300 levels.
· There was a break above a major bearish trend line with resistance near 1.3240 on the hourly chart of GBP/USD.
· EUR/GBP started a fresh decline from well above the 0.8580 support level.
· There is a major bearish trend line forming with resistance near 0.8540 on the hourly chart.
GBP/USD Technical Analysis
The British Pound declined heavily below the 1.3300 level against the US Dollar. The GBP/USD pair formed a base above the 1.3265 level and recently started an upside correction.
The pair recovered above the 1.3200 resistance level. There was a break above the 50% Fib retracement level of the downward move from the 1.3289 high to 1.3163 low (formed on FXOpen). Besides, there was a break above a major bearish trend line with resistance near 1.3240 on the hourly chart of GBP/USD.
The pair is now trading near the 1.3250 level and the 50 hourly simple moving average. It is close to the 76.4% Fib retracement level of the downward move from the 1.3289 high to 1.3163 low.
On the upside, an initial resistance is near the 1.3265 level. If there is an upside break above the 1.3450 resistance and the 50 hourly SMA, the price could surpass 1.3280. The main resistance is near the 1.3300 zone.
Therefore, a proper break above the 1.3300 resistance could open the doors for a steady increase. The next major resistance for the bulls could be 1.3350. If not, the pair could start a fresh decline below 1.3220. An immediate support is near the 1.3200 level.
The first key support is near the 1.3180 level. Any more losses could lead the pair towards the 1.3150 support zone. The next major support sits near the 1.3080 level.
EUR/GBP Technical Analysis
The Euro started a strong decline after it failed to clear the 0.8600 resistance against the British Pound. The EUR/GBP pair traded below the 0.8580 support to move into a bearish zone.
There was a break below the 0.8550 level and the 50 hourly simple moving average. The pair even traded below the 50% Fib retracement level of the upward move from the 0.8490 swing low to 0.8600 high.
It is now trading near the 0.8525 level and the 50 hourly simple moving average. An initial support on the downside is near the 0.8520 level.
The next major support is near 0.8500 level. A downside break below the 0.8520 and 0.8500 support levels might call for more downsides. In the stated case, the pair could decline towards the 0.8450 support level in the near term.
On the upside, the pair is facing resistance near the 0.8540 level. There is also a major bearish trend line forming with resistance near 0.8540 on the hourly chart.
A clear move above the trend line resistance and 0.8550 might push the price higher. The main resistance on the upside is near the 0.8600 level.
This forecast represents FXOpen Markets Limited opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Markets Limited products and services or as financial advice.