GBP/USD And EUR/GBP Could Start A Fresh Increase

Aayush Jindal -

GBP/USD settled nicely above the 1.3000 level and it is likely to continue higher. EUR/GBP is currently trading above the 0.9000 pivot, but it must surpass 0.9050 to start a fresh increase.

Important Takeaways for GBP/USD and EUR/GBP

  • The British Pound started a downside correction from the 1.3180 and 1.3200 resistance levels.
  • There is a key bullish trend line forming with support near 1.3030 on the hourly chart of GBP/USD.
  • EUR/GBP is holding the key 0.8980 and 0.9000 support levels.
  • There is a major bearish trend line forming with resistance near 0.9045 on the hourly chart.

GBP/USD Technical Analysis

The British Pound remained in a positive zone and it settled nicely above the 1.3000 handle against the US Dollar. The GBP/USD pair broke many hurdles near 1.3120 to move further into a positive zone.

It even surpassed the 1.3150 resistance and settled well above the 50 hourly simple moving average. It traded as high as 1.3185 on FXOpen, but it struggled to continue higher.

There is also a key bullish trend line forming with support near 1.3030 on the hourly chart of GBP/USD. Above the trend line, the next hurdle is near the 1.3100 level. It is close to the 50% Fib retracement level of the recent decline from the 1.3185 high to 1.3009 low.

The next key hurdle is near the 1.3110, above which the pair is likely to climb back above 1.3150. A successful close above the 1.3180 level is needed for more gains.

Conversely, the pair could struggle to clear the 1.3100 resistance. On the downside, the main support is near the 1.3000 level, below which the pair could continue to move down towards the 1.2850 support.

EUR/GBP Technical Analysis

The Euro struggled to continue higher above the 0.9080 and 0.9100 resistance levels against the British Pound. The EUR/GBP pair topped just below the 0.9100 level and declined below 0.9040.

It even broke the key 0.9000 support level, but the bulls protected the 0.8980 zone. The recent swing low is formed near 0.8984 and the pair is currently recovering. There was a break above the 0.9020 level and the 50 hourly simple moving average.

Moreover, the pair surpassed the 50% Fib retracement level of the recent decline from the 0.9058 swing high to 0.8984 swing low. At the moment, the pair is struggling to clear the 0.9040 and 0.9050 resistance levels.

There is also a major bearish trend line forming with resistance near 0.9045 on the hourly chart. A successful close above the 0.9050 resistance level is needed for a fresh increase.

In the mentioned case, the pair could rise towards the 0.9080 and 0.9100 resistance levels. Conversely, the EUR/GBP pair could dive below the main 0.9000 and 0.8980 support levels in the coming sessions.