GBP/USD started a fresh decline below the 1.2450 support level. EUR/GBP climbed higher above the 0.9050 resistance and it is showing signs of more upsides.
Important Takeaways for GBP/USD and EUR/GBP
- The British Pound declined steadily after it failed to stay above the 1.2500 support.
- There is a major bearish trend line forming with resistance near 1.2380 on the hourly chart of GBP/USD.
- EUR/GBP managed to clear the 0.9050 and 0.9075 resistance levels to continue higher.
- There was a break above a crucial bearish trend line with resistance near 0.9062 on the hourly chart.
GBP/USD Technical Analysis
This past week, the British Pound climbed above the 1.2500 resistance against the US Dollar. However, the GBP/USD pair struggled to continue above the 1.2550 zone and recently started a fresh decline.
There was a break below the 1.2500 and 1.2480 support levels. The pair even broke the 1.2400 support and settled well below the 50 hourly simple moving average. It traded as low as 1.2314 on FXOpen and it is currently correcting higher.
There was a break above the 1.2340 and 1.2350 resistance levels. The pair even climbed above the 23.6% Fib retracement level of the recent drop from the 1.2464 high to 1.2314 low.
It is now approaching a couple of important hurdles near 1.2380 and 1.2400. There is also a major bearish trend line forming with resistance near 1.2380 on the hourly chart of GBP/USD. The trend line is close to the 50% Fib retracement level of the recent drop from the 1.2464 high to 1.2314 low.
The 50 hourly simple moving average is also near the 1.2400 level to act as a major hurdle. Therefore, GBP/USD might struggle to clear the 1.2400 resistance zone.
If the bulls succeed in clearing the 1.2400 barrier, the pair could recover easily towards the 1.2500 resistance. If not, there are high chances of more losses below the 1.2340 and 1.2320 levels in the near term.
EUR/GBP Technical Analysis
The Euro remained in a positive zone above the 0.9000 pivot level against the British Pound. The EUR/GBP pair consolidated in a broad range for a few sessions above the 0.9000 support.
Finally, the bulls gained traction and the pair broke a few important resistances near 0.9050 and 0.9070. Moreover, there was a break above a crucial bearish trend line with resistance near 0.9062 on the hourly chart.
The pair settled nicely above the 0.9075 level and the 50 hourly simple moving average. It traded as high as 0.9099 and it is currently correcting lower.
An initial support on the downside is seen near the 0.9080 and 0.9075 levels (the recent breakout zone). It is also close to the 23.6% Fib retracement level of the recent upward move from the 0.9000 swing low to 0.9099 high.
The next major support could be 0.9050 and the 50 hourly simple moving average. The 50% Fib retracement level of the recent upward move from the 0.9000 swing low to 0.9099 high is also near 0.9050.
Any further losses might push the price towards the 0.9020 support zone. Conversely, the pair could continue to rise above the 0.9090 and 0.9100 levels. The next major resistance is near 0.9125, followed by 0.9140.
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