GBP/USD and EUR/GBP: British Pound Surging

Aayush Jindal -

GBP/USD is gaining momentum and it recently climbed above the 1.3080 resistance area. EUR/GBP is declining and it seems like it could decline further below 0.8400.

Important Takeaways for GBP/USD and EUR/GBP

  • The British Pound is surging and it recently climbed above 1.3080 and 1.3120.
  • There is a key bullish trend line forming with support near 1.3125 on the hourly chart of GBP/USD.
  • EUR/GBP is currently under a lot of pressure below the 0.8450 and 0.8440 resistance levels.
  • There is a major bearish trend line forming with resistance near 0.8445 on the hourly chart.

GBP/USD Technical Analysis

The British Pound started a strong rise from the 1.2880 support area against the US Dollar. The GBP/USD pair rallied above many resistances near 1.3000 to move into a solid uptrend zone.

Moreover, there was a break above the 1.3080 resistance and the 50 hourly simple moving average. Finally, there was a break above the 1.3100 level and the pair traded as high as 1.3165 on FXOpen.

Recently, there was a downside correction below the 1.3150 level. Besides, there was a break below the 23.6% Fib retracement level of the upward move from the 1.2983 low to 1.3165 high.

However, the pair remained well bid above the 1.3100 support area. Additionally, there is a key bullish trend line forming with support near 1.3125 on the hourly chart of GBP/USD.

If there is a downside break, the pair could test the 1.3080 support area. The 50% Fib retracement level of the upward move from the 1.2983 low to 1.3165 high is also near the 1.3075 level to provide support.

Any further losses may perhaps push the pair towards the 1.3060 support level. On the other hand, the pair might continue to move up above 1.3150.

An immediate resistance is near the 1.31655 level, above which GBP/USD is likely to test the main 1.3200 resistance area. Any further gains could lead the pair towards the 1.3250 level.

EUR/GBP Technical Analysis

The Euro remained in a bearish zone below 0.8550 against the British Pound. The EUR/GBP pair broke a few key supports near the 0.8460 level to enter a bearish zone.

Moreover, there was a close below the 0.8440 level and the 50 hourly simple moving average. The pair traded as low as 0.8410 and it is currently consolidating losses.

An immediate resistance is near the 0.8425 level. Besides, the 23.6% Fib retracement level of the recent decline from the 0.8467 high to 0.8410 low is also near the 0.8423 level.

The first major resistance is near the 0.8440 level and the 50 hourly simple moving average. More importantly, there is a major bearish trend line forming with resistance near 0.8445 on the hourly chart.

The 50% Fib retracement level of the recent decline from the 0.8467 high to 0.8410 low is also near the trend line resistance area. Therefore, a clear break above the 0.8440 and 0.8450 levels is needed for a decent recovery in the near term towards the 0.8500 handle.

Conversely, EUR/GBP might continue to move down below the 0.8410 low. The main support is near the 0.8400 level, below which there is a risk of more losses towards the 0.8360 level in the near term.