GBP/USD and EUR/GBP Consolidating Below Key Resistances

FXOpen

GBP/USD declined recently and settled below the 1.2840-50 support area. EUR/GBP is currently in an uptrend, but it is struggling to break the 0.8920-30 resistance area.

Important Takeaways for GBP/USD and EUR/GBP

  • The British Pound broke the 1.2800 support recently and tested the 1.2730 zone.
  • There is a major bearish trend line in place with resistance at 1.2820 on the hourly chart of GBP/USD.
  • EUR/GBP is currently placed nicely above the 0.8860 support area.
  • There is a major resistance trend line in place with resistance at 0.8930 on the hourly chart.

GBP/USD Technical Analysis

The British Pound started a major downside move from well above the 1.2900 support area against the US Dollar. The GBP/USD pair traded lower and broke the 1.2880, 1.2850 and 1.2800 support levels.

The decline was such that the pair even settled below the 1.2800 level and the 50 hourly simple moving average. A low was formed near 1.2730 on FXOpen and later the pair started consolidating in a range above 1.2740.

GBP/USD Technical Analysis Chart

The recent swing low was 1.2732 and later the pair moved above the 23.6% Fib retracement level of the last slide from the 1.2849 high to 1.2732 low. However, there are many hurdles on the upside near the 1.2775 level and the 50 hourly SMA.

Above 1.2775, the next resistance is around 1.2795 and the 50% Fib retracement level of the last slide from the 1.2849 high to 1.2732 low. More importantly, there is a major bearish trend line in place with resistance at 1.2820 on the hourly chart.

Therefore, if the pair continues to move higher, it could find a lot of hurdles near the 1.2790 and 1.2820 levels. A successful close above 1.2820 may push the pair towards the next resistance at 1.2850.

On the downside, an initial support is at 1.2750 followed by the 1.2730 base. If there is a downside break below 1.2730, the pair could decline towards the 1.2660 support zone.

EUR/GBP Technical Analysis

The Euro remained in a major uptrend and it recently traded above the 0.8900 resistance area against the British Pound. The EUR/GBP pair traded towards the key 0.8920-30 resistance area where sellers emerged and protected more gains.

Later, the pair corrected lower and traded below the 0.8900 support area. There was a break below the 38.2% Fib retracement level of the last wave from the 0.8810 low to 0.8924 high. The pair even declined below the 0.8880 support level and the 50 hourly simple moving average.

EUR/GBP Technical Analysis Chart

However, the decline was protected by the 0.8860 support and the 50% Fib retracement level of the last wave from the 0.8810 low to 0.8924 high.

Later, the pair bounced back and it is currently trading near the 0.8890 level. On the upside, an initial resistance is near 0.8900 and the 50 hourly SMA. Above this, the main hurdle is near a major resistance trend line in place with resistance at 0.8930 on the hourly chart.

A proper close above the 0.8930 resistance could accelerate gains towards the next key barrier at 0.9000. On the downside, the pair may continue to find support near the 0.8860 support. If sellers push EUR/GBP below 0.8860, the pair is likely to correct lower towards the 0.8840 or 0.8810 support.

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

Commodities and European currencies Test Key Supports EUR/USD Analysis: The Price Today Has Set Its Minimum Since the Beginning of March Market Analysis: GBP/USD Dives While USD/CAD Gains Bullish Pace The US Currency Corrects After Recent Growth USD/JPY Price Analysis: Consolidation ahead of US News

Latest articles

Commodities

Market Analysis: Gold Price and Crude Oil Price Gain Bullish Momentum

Gold price started a steady increase above the $2,200 resistance level. Crude oil prices are gaining bullish momentum and might rise toward $85.00.

Important Takeaways for Gold and Oil Prices Analysis Today

· Gold price started a decent increase

How Do Grid Trading Strategies Work?
Trader’s Tools

How Do Grid Trading Strategies Work?

Grid trading stands as a distinctive strategy within the trading realm, offering a structured approach to navigating market volatility. By strategically placing buy and sell orders at predefined intervals, this method eschews the need to determine the market direction, instead

Weekly Market Wrap With Gary Thomson: NIKKEI-225, USD/JPY, GBP/USD, USD/CAD, Gold
Financial Market News

Weekly Market Wrap With Gary Thomson: NIKKEI-225, USD/JPY, GBP/USD, USD/CAD, Gold

Get the latest scoop on the week's hottest headlines, all in one convenient video. Join Gary Thomson, the COO of  FXOpen UK, as he breaks down the most significant news reports and shares his expert insights.

  • NIKKEI-225 Analysis Indicates Possibility

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. 65.68% 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.