GBP/USD is gaining pace and it recovered above the 1.2300 resistance area. EUR/GBP is sliding and it is likely to face hurdles near the 0.9050 area.
Important Takeaways for GBP/USD and EUR/GBP
- The British Pound is showing a lot of positive signs above the 1.2300 and 1.2350 levels.
- There is a key bullish trend line forming with support near 1.2375 on the hourly chart of GBP/USD.
- EUR/GBP is declining and it is now trading well below the 0.9100 pivot level.
- There is a major bearish trend line forming with resistance near 0.9050 on the hourly chart.
GBP/USD Technical Analysis
This past week, the British Pound started a decent recovery wave above the 1.1850 resistance against the US Dollar. As a result, the GBP/USD pair broke many key hurdles near the 1.2020 and 1.2100 resistance levels.
The upward move gained pace and the pair rallied above the 1.2200 barrier and the 50 hourly simple moving average. Finally, the pair broke the 1.2400 barrier and it traded as high as 1.2485 on FXOpen.
It is currently correcting lower and trading below the 1.2400 level. It broke the 23.6% Fib retracement level of the recent wave from the 1.2144 low to 1.2485 high.
On the downside, there are many supports near 1.2375 and 1.2350. There is also a key bullish trend line forming with support near 1.2375 on the hourly chart of GBP/USD.
Below the trend line support, the pair is likely to find a strong support near the 1.2320 level. The 50% Fib retracement level of the recent wave from the 1.2144 low to 1.2485 high is also near the 1.2315 level to provide support.
Any further losses may perhaps start a major decline towards the 1.2260 and 1.2250 support levels. On the upside, an initial hurdle is near the 1.2420 level.
A clear break above the 1.2420 and 1.2450 resistance levels could open the doors for a larger rally towards the 1.2500 barrier in the coming sessions.
EUR/GBP Technical Analysis
The Euro started a major decline from well above the 0.9300 support area against the British Pound. The EUR/GBP pair gained bearish momentum and it even broke the key 0.9100 pivot area.
Besides, there was a clear break below the 0.9000 support level and the 50 hourly simple moving average. The pair traded as low as 0.8904 and it is currently consolidating losses.
On the upside, an initial resistance is near the 0.8990 level. It is close to the 23.6% Fib retracement level of the recent decline from the 0.9274 high to 0.8904 low.
The main hurdle is near the 0.9050 level and the 50 hourly simple moving average. There is also a major bearish trend line forming with resistance near 0.9050 on the hourly chart.
The main hurdle is near the 0.9080 level. It coincides with the 50% Fib retracement level of the recent decline from the 0.9274 high to 0.8904 low.
Therefore, a clear break above the 0.9050 and 0.9080 levels is needed for a sustained upward move in the coming sessions. The next key hurdle is near the 0.9100 level.
If the pair fails to correct above 0.9000 or 0.9050, there is a risk of more losses in EUR/USD. The main supports on the downside are near 0.8900 and 0.8880.
* 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.