GBP/USD extended its rise above the 1.3680 and 1.3700 resistance levels. EUR/GBP is correcting lower and it is approaching a major support near 0.8875.
Important Takeaways for GBP/USD and EUR/GBP
- The British Pound remained well bid above 1.3600 and it climbed above 1.3680.
- There is a key contracting triangle forming with resistance near 1.3715 on the hourly chart of GBP/USD.
- EUR/GBP started a fresh decline after it failed to clear the main 0.8920 resistance zone.
- Earlier, there was a break above a short-term bearish trend line with resistance near 0.0.8860 on the hourly chart.
GBP/USD Technical Analysis
After forming a base above the 1.3500 and 1.3520, there was a fresh increase in the British Pound against the US Dollar. The GBP/USD pair broke the 1.3580 and 1.3600 resistance levels to move into a positive zone.
The pair gained momentum above 1.3600 and it even spiked above the 1.3680 resistance. There was also a break above the 1.3700 zone and the pair settled above the 50 hourly simple moving average.
A new multi-month high was formed near 1.3746 on FXOpen before the pair started a downside correction. It traded below the 1.3680 support level and the 50 hourly simple moving average, but the bulls protected the 1.3640 level.
A low is formed near 1.3636 and the pair is currently rising. It is trading above the 1.3680 level, the 50 hourly simple moving average, and the 50% Fib retracement level of the downward move from the 1.3746 high to 1.3636 low.
It seems like there is a key contracting triangle forming with resistance near 1.3715 on the hourly chart of GBP/USD. An immediate resistance is near the 1.3700 zone or the 61.8% Fib retracement level of the downward move from the 1.3746 high to 1.3636 low.
A successful break above the 1.3700 and 1.3715 levels could open the doors for a new high above the 1.3746 in the near term. Conversely, the pair could break the triangle support and continue lower towards the main 1.3620 support level.
EUR/GBP Technical Analysis
The Euro started a fresh increase from the 0.8830 low against the British Pound. The EUR/GBP pair broke the 0.8850 and 0.8860 resistance levels to move into a positive zone.
There was also a break above a short-term bearish trend line with resistance near 0.0.8860 on the hourly chart. The pair surged above the 0.8900 level, but it struggled to clear a major hurdle near the 0.8920 zone.
A high is formed near 0.8918 and the pair is currently declining. It broke the 0.8900 level and tested the 38.2% Fib retracement level of the upward move from the 0.8830 swing low to 0.8918 high.
On the downside, there is a major support waiting near the 0.8875 level and the 50 hourly simple moving average. It is also close to the 50% Fib retracement level of the upward move from the 0.8830 swing low to 0.8918 high.
Any more losses could lead the pair towards the 0.8850 support level in the near term. Conversely, the pair could start a fresh increase from the 0.8875 support zone.
On the upside, the 0.8900 level is a short-term resistance for the Euro bulls. However, the main hurdle is still near 0.8920, above which EUR/GBP could rally towards the 0.9000 resistance.
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