GBP/USD started a steady decline below the 1.3900 zone. EUR/GBP is rising and it might continue to rise if it breaks the 0.8600 resistance zone.

Important Takeaways for GBP/USD and EUR/GBP

• The British Pound failed to recover above the key 1.3900 resistance zone.
• There is a major bearish trend line forming with resistance near 1.3855 on the hourly chart of GBP/USD.
• EUR/GBP started a fresh increase after it found a strong support near the 0.8500 zone.
• There was a break above a major bearish trend line with resistance near 0.8550 on the hourly chart.

GBP/USD Technical Analysis

The British Pound made many attempts to clear the 1.3900 and 1.3910 resistance levels against the US Dollar. The GBP/USD pair started a major decline and it settled below the 1.3850 pivot level.

The pair even broke the 1.3800 support level and it settled below the 50 hourly simple moving average. The recent low was formed near 1.3746 and the pair is now showing a lot of bearish signs.

An immediate resistance on the upside is near the 1.3775 level. The 23.6% Fib retracement level of the downward move from the 1.3861 swing high to 1.3746 low. The first major resistance is now forming near the 1.3800 zone.

The 50% Fib retracement level of the downward move from the 1.3861 swing high to 1.3746 low is also near the 1.3800 zone. The next major resistance near the 1.3820 level and the 50 hourly simple moving average.

There is also a major bearish trend line forming with resistance near 1.3855 on the hourly chart of GBP/USD. To move into a positive zone, the pair must clear the bearish trend line and then 1.3900.

An immediate support on the downside is near the 1.3745 level. A downside break below the 1.3745 level might call for a fresh decline towards the 1.3700 level. Any more losses could lead the pair towards the 1.3650 level in the near term.

EUR/GBP Technical Analysis

The Euro formed a strong base above the 0.8500 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 0.8550 level and the 50 hourly simple moving average. The pair climbed steadily above the 50% Fib retracement level of the downward move from the 0.8617 high to 0.8503 low.

Moreover, there was a break above a major bearish trend line with resistance near 0.8550 on the hourly chart. The pair is now approaching the 0.8590 resistance zone.

The 76.4% Fib retracement level of the downward move from the 0.8617 high to 0.8503 low is also near the 0.8590 resistance zone. The main barrier is near the 0.8600 zone. A close above the 0.8600 barrier could set the pace for a larger increase.

An initial support on the downside is near the 0.8565 level. The next major support is near 0.8555 level and the 50 hourly simple moving average. A downside break below the 0.8555 and 0.8550 support levels might call for a fresh decline. In the stated case, the pair could decline towards the 0.8520 support level in the near term.

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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