GBP/USD is currently struggling to clear the 1.2500-1.2520 resistance area and it could extend its decline. EUR/GBP might correct higher towards 0.8720 or 0.8750.
Important Takeaways for GBP/USD and EUR/GBP
- The British Pound formed a swing high near the 1.2645 before starting a fresh decline.
- There is a major bearish trend line forming with resistance near 1.2490 on the hourly chart of GBP/USD.
- EUR/GBP is currently consolidating above the key 0.8680 support area.
- There is a key bearish trend line forming with resistance near 0.8710 on the hourly chart.
GBP/USD Technical Analysis
This past week, the British Pound gained bullish momentum above the 1.2550 resistance area against the US Dollar. The GBP/USD pair even broke the 1.2600 resistance before it faced sellers near 1.2650.
A high was formed near 1.2647 on FXOpen before the pair started a fresh decline. It broke the 1.2520 support level and tested the 1.2400 area. A low was formed near 1.2406 before it recovered to 1.2516.
It is currently declining and trading below the 1.2500 level and the 50 hourly simple moving average. It is testing the 38.2% Fib retracement level of the recent upward move from the 1.2406 low to 1.2516 high.
On the upside, there are key hurdles forming near the 1.2500 and 1.2520 levels. There is also a major bearish trend line forming with resistance near 1.2490 on the hourly chart of GBP/USD.
Therefore, the pair must surpass the 1.2520 resistance area to start a fresh increase in the near term. The next key resistance is near 1.2565, above which the pair might rise towards the 1.2600 level.
On the downside, an initial support is near the 1.2460 level or the 50% Fib retracement level of the recent upward move from the 1.2406 low to 1.2516 high. Any further losses may perhaps lead the pair towards the 1.2400 support area, where the bulls are likely to put up a strong fight.
EUR/GBP Technical Analysis
The Euro remained in a bearish zone and settled below the 8750 support level against the British Pound. The EUR/GBP pair even broke the 0.8700 support level to move into a negative zone.
It traded as low as 0.8683 and seems to be forming a strong support base above the 0.8680 level. It is currently rising and testing the 50 hourly simple moving average. Besides, the 38.2% Fib retracement level of the recent decline from the 0.8744 high to 0.8683 low is near 0.8705 to act as a resistance.
More importantly, there is a key bearish trend line forming with resistance near 0.8710 on the hourly chart. Above the trend line, the key resistance is near the 0.8720 level.
An intermediate resistance is near 0.8715 or the 50% Fib retracement level of the recent decline from the 0.8744 high to 0.8683 low. Therefore, the pair must surpass the 0.8715 and 0.8720 resistance levels to continue higher.
The next key hurdle is seen near the 0.8750 level. If EUR/GPB fails to surpass the 0.8715 or 0.8720 resistance area, there are chances of a fresh decline.
An initial support is near the 0.8690 level. The main support for EUR/GBP is near the 0.8680 level, below which the bears are likely to aim a test of the 0.8640 support.
Trade global forex with the Innovative Broker of 2022*. Choose from 50+ forex markets 24/5. Open your FXOpen account now or learn more about making your money go further with FXOpen.
* FXOpen International, Innovative Broker of 2022, according to the IAFT
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.