GBP/USD failed to clear the key 1.4000 resistance zone and corrected lower. EUR/GBP is rising and it might gain pace if it clears the 0.8600 barrier.
Important Takeaways for GBP/USD and EUR/GBP
- The British Pound failed to gain pace above the main 1.4000 resistance zone.
- There is a major bearish trend line forming with resistance near 1.3920 on the hourly chart of GBP/USD.
- EUR/GBP started a fresh increase after it found a strong support near the 0.8530 zone.
- There is a short-term contracting triangle forming with resistance near 0.8595 on the hourly chart.
GBP/USD Technical Analysis
The British Pound failed to reclaim the 1.4000 handle and it started a fresh decline against the US Dollar. The GBP/USD pair broke the 1.3900 support zone and the 50 hourly simple moving average.
The pair even spiked below 1.3800 before it found support near 1.3785. A low was formed near 1.3786 and the pair recently started an upside correction. There was a break above the 1.3850 and 1.3900 resistance levels.
The pair even moved above 1.3950, but it failed to clear the 1.4000 resistance zone. A high was formed near 1.4000 and the pair is now moving lower.
It broke the 50% Fib retracement level of the upward move from the 1.3786 swing low to 1.4000 high. It is now trading below 1.3900 and the 50 hourly simple moving average. There is also a major bearish trend line forming with resistance near 1.3920 on the hourly chart of GBP/USD.
An immediate support on the downside is near the 1.3865 level. It is near the 61.8% Fib retracement level of the upward move from the 1.3786 swing low to 1.4000 high.
A downside break below the 1.3865 level might call for a fresh decline towards the 1.3800 level. On the upside, an immediate resistance is near the 1.3920 level. The next major resistance is near the 1.4000 level.
A successful close above 1.3920 and a follow up move above 1.4000 could open the doors for a move towards the 1.4120 resistance.
EUR/GBP Technical Analysis
The Euro formed a strong base above the 0.8530 level against the British Pound. The EUR/GBP pair started a fresh increase above the 0.8550 resistance to move into a positive zone.
There was also a above the 0.8580 level and the 50 hourly simple moving average. The pair even spiked above the 0.8600 level and a high was formed near 0.8604. It is now consolidating gains below the 0.8600 level.
There is also a short-term contracting triangle forming with resistance near 0.8595 on the hourly chart. The triangle is near the 38.2% Fib retracement level of the recent increase from the 0.8558 swing low to 0.8604 high.
If there is a downside break below the triangle support, the pair could test the 0.8580 support. it is near the 50% Fib retracement level of the recent increase from the 0.8558 swing low to 0.8604 high.
The next major support is near 0.8575 level and the 50 hourly simple moving average. On the upside, the pair is facing a major resistance near 0.8600. A break above the 0.8600 level might call for a sharp increase. The next key resistance is near the 0.8640 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.
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