GBP/USD and EUR/GBP: British Pound Losing Strength

FXOpen

GBP/USD is declining and it is now trading well below the 1.3150 level. EUR/GBP is recovering and it could continue to rise towards the 0.8560 resistance.

Important Takeaways for GBP/USD and EUR/GBP

  • The British Pound is showing a lot of negative signs below the 1.3100 level.
  • There is a key bearish trend line forming with resistance near 1.3040 on the hourly chart of GBP/USD.
  • EUR/GBP is trading in a positive zone above the 0.8500 and 0.8480 support levels.
  • There is a short term bearish trend line forming with resistance near 0.8520 on the hourly chart.

GBP/USD Technical Analysis

The British Pound started a strong decline after a massive rally towards 1.3500 against the US Dollar. The GBP/USD pair trimmed most its gains and traded below the 1.3320 and 1.3200 support levels.

Moreover, there was a close below the 1.3200 level and the 50 hourly simple moving average. Finally, there was a break below the 1.3100 support area and the pair traded as low as 1.2978 on FXOpen.

GBP/USD Technical Analysis British Pound US Dollar

The pair is currently correcting higher above the 1.3000 level. It is testing the 23.6% Fib retracement level of the recent decline from the 1.3132 high to 1.2978 low.

On the upside, there are many hurdles near 1.3030, 1.3040 and 1.3050. Besides, there is a key bearish trend line forming with resistance near 1.3040 on the hourly chart of GBP/USD.

The 50% Fib retracement level of the recent decline from the 1.3132 high to 1.2978 low is also near the 1.3050 level. Therefore, GBP/USD must break the 1.3040 and 1.3050 resistance levels to start a decent recovery.

The next major resistance is near the 1.3100 and 1.3120 levels, above which the pair could continue to rise in the near term.

On the downside, an initial support is near the 1.2980 level, below which GBP/USD sellers could gain momentum. The next major support could be 1.2950, followed by the 1.2920 pivot level.

EUR/GBP Technical Analysis

The Euro started a strong rise from the 0.8275 swing low against the British Pound. The EUR/GBP pair broke many resistances near the 0.8380 and 0.8400 levels to move into a positive zone.

Moreover, there was a close above the 0.8450 level and the 50 hourly simple moving average. Finally, the pair rallied above 0.8500 and traded as high as 0.8555.

EUR/GBP Technical Analysis Euro Pound

It is currently correcting gains below 0.8530. The pair declined below the 23.6% Fib retracement level of the upward move from the 0.8275 low to 0.8555 high.

However, there are many supports on the downside near the 0.8500 and 0.8480 levels. The next major support is near the 0.8450 level. Besides, the 50% Fib retracement level of the upward move from the 0.8275 low to 0.8555 high is near the 0.8450 level.

If there is a downside break below the 0.8450 level, the pair could continue to decline towards the 0.8400 support area in the near term.

Conversely, EUR/GBP might continue to rise above 0.8530 and 0.8550. More importantly, there is a short term bearish trend line forming with resistance near 0.8520 on the hourly chart.

A clear break above the trend line and 0.8530 could start another increase and the pair will most likely climb above the 0.8550 resistance area.

Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.

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.

Latest from Forex Analysis

Volatility in the Pound Is Rising, the Euro is Consolidating Commodity Currencies at Strategic Levels. What Can Affect a Breakdown Downwards? Market Analysis: AUD/USD and NZD/USD Turn Red The Dollar is Corrected after the Comments of the Head of the Federal Reserve USD/JPY Analysis: Prospect of a Breakout of the Level of 155 Yen per Dollar

Latest articles

Indices

Germany's DAX 40 Index Flying High Despite Pessimistic National Outlook

For a number of years now, there has been a lot of discourse over the current situation and the future of the German domestic economy.

From both inside Germany and globally, analysts, government officials, and corporate leaders have demonstrated a

Forex Analysis

Volatility in the Pound Is Rising, the Euro is Consolidating

GBP/USD

At the end of last week, the British currency fell sharply, testing a significant support level at 1.2300. The resumption of the downward trend for the pair became possible after some statements by British officials:

  • On Wednesday,
Commodities

The Price of Gold XAU/USD Shows Strongest Fall in Almost 2 Years

On Monday, the price of gold fell from USD 2,386 to USD 2,333 per ounce — this is the strongest drop in one day in almost 2 years, according to Bloomberg. On Tuesday morning in the Asian session, the

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.