GBP/USD And EUR/GBP: British Pound Attempting Recovery

Aayush Jindal -

GBP/USD extended its decline below the 1.2800 and 1.2750 support levels. EUR/GBP is currently trading below the 0.9150 support zone and facing key hurdles.

Important Takeaways for GBP/USD and EUR/GBP

  • The British Pound declined steadily after it broke the 1.2800 support level.
  • There is a key bearish trend line forming with resistance near 1.2760 on the hourly chart of GBP/USD.
  • EUR/GBP retested the 0.9085 support level and it is currently correcting higher.
  • Recently, there was a break below a contracting triangle with support near 0.9130 on the hourly chart.

GBP/USD Technical Analysis

The British Pound started a strong decline after it failed to settle above 1.3000 against the US Dollar. The GBP/USD pair broke a major support zone near the 1.2920 level to move into a bearish zone.

The pair even broke the 1.2800 support level and settled below the 50 hourly simple moving average. The decline extended below the 1.2750 support and it traded as low as 1.2675 on FXOpen.

The recent low was near 1.2687 and the pair is currently attempting a decent recovery. There was a break above the 1.2720 resistance, plus the 50% Fib retracement level of the recent decline from the 1.2806 high to 1.2687 low.

The GBP/USD pair is now trading above the 50 hourly simple moving average and it is attempting a close above a key bearish trend line forming with resistance near 1.2760 on the hourly chart.

The next key resistance is near the 1.2780 level. It is close to the 76.4% Fib retracement level of the recent decline from the 1.2806 high to 1.2687 low. A successful close above the 1.2780 and 1.2800 resistance levels might start a steady rise.

The next major resistance is near the 1.2850 level, above which the pair might revisit 1.2920. Conversely, the pair might continue to move down below the 1.2740 support.

A break below the 1.2720 level and the 50 hourly SMA could start another decline. The next key support is near the 1.2680 level, below which it could test 1.2650.

EUR/GBP Technical Analysis

The Euro started a fresh decline from the 0.9220 zone against the British Pound. The EUR/GBP pair broke the 0.9150 support zone to move into a short-term bearish zone.

The pair gained pace below the 0.9100 support level and the 50 hourly simple moving average. Recently, there was a break below a contracting triangle with support near 0.9130 on the hourly chart.

Finally, the pair tested the 0.9080 support zone. A low is formed near 0.9084 and the pair is currently correcting higher. It broke the 23.6% Fib retracement level of the recent decline from the 0.9168 high to 0.9084 low.

On the upside, the first key resistance is near the 0.9120 level. It is close to the 50% Fib retracement level of the recent decline from the 0.9168 high to 0.9084 low.

The next major resistance is near the 0.9140 level and the 50 hourly simple moving average. A successful close above the 50 hourly simple moving average could open the doors for more gains above 0.9150.

Conversely, the EUR/GBP pair could continue to move down below the 0.9100 level. The first major support is near the 0.9080 level, below which the pair may perhaps decline towards the 0.9050 support.