GBP/USD and EUR/GBP Target Additional Losses

FXOpen

GBP/USD started a steady decline from the 1.4000 resistance zone. EUR/GBP also declined and it broke the key 0.8500 support zone.

Important Takeaways for GBP/USD and EUR/GBP

  • The British Pound failed to surpass the 1.4000 resistance zone and started a fresh decline.
  • There is a major bearish trend line forming with resistance near 1.3915 on the hourly chart of GBP/USD.
  • EUR/GBP started a fresh decline from well above the 0.8550 pivot level.
  • There is a key bearish trend line forming with resistance near 0.8500 on the hourly chart.

GBP/USD Technical Analysis

The British Pound made many attempts to clear the 1.3400 resistance level against the US Dollar, but it failed. As a result, the GBP/USD pair started a steady decline below the 1.3950 level.

The pair even broke the 1.3920 support level and it settled below the 50 hourly simple moving average. Finally, there was a break below the 1.3900 support and the pair traded as low as 1.3855 on FXOpen.

GBP/USD Technical Analysis Pound Dollar

It is now consolidating losses above the 1.3850 support. An immediate resistance on the upside is near the 1.3875 level. The 23.6% Fib retracement level of the downward move from the 1.3948 swing high to 1.3855 low is also near the 1.3875 level.

The first major resistance is now forming near the 1.3900 zone and 50 hourly simple moving average. It is close to the 50% Fib retracement level of the downward move from the 1.3948 swing high to 1.3855 low.

Moreover, there is a major bearish trend line forming with resistance near 1.3915 on the hourly chart of GBP/USD. Therefore, a proper break above the 1.3900 resistance and the trend line could open the doors for a steady increase.

An immediate support on the downside is near the 1.3850 level. A downside break below the 1.3850 level might call for more losses. The next major support is near the 1.3800 level. Any more losses could lead the pair towards the 1.3740 level in the near term.

EUR/GBP Technical Analysis

The Euro formed a key top near the 0.8557 level against the British Pound. The EUR/GBP pair started a fresh decline below the 0.8520 support zone and moved into a bearish zone.

The pair even broke the 0.8500 support level and it settled below the 50 hourly simple moving average. A low is formed near 0.8469 and it is now consolidating losses. An immediate resistance is near the 0.8485 level.

EUR/GBP Technical Analysis Euro Pound

The first key resistance is near the 0.8500 level. There is also a key bearish trend line forming with resistance near 0.8500 on the hourly chart.

The trend line is close to the 23.6% Fib retracement level of the downward move from the 0.8557 high to 0.8469 low. The next major resistance is near the 0.8515 level, where the bulls might face a strong selling interest.

The 50% Fib retracement level of the downward move from the 0.8557 high to 0.8469 low is also close to 0.8515. An initial support on the downside is near the 0.8475 level.

The next major support is near 0.8565 level. A downside break below the 0.8565 and 0.8560 support levels might call for more downsides. In the stated case, the pair could decline towards the 0.8500 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.

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

Market Analysis: GBP/USD Struggles While USD/CAD Aims Higher USD/JPY Technical Analysis: Yen Strengthens after Comments from Japanese Officials The American Currency Resumes Its Growth Australian Dollar Weakens amid Inflation News Exchange Rates Consolidate at the Beginning of the Week

Latest articles

Financial Market News

Weekly Market Wrap With Gary Thomson: CAC 40, AUD, OIL, AMAZON

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. European Stock Markets on

Commodities

Price of Gold Briefly Exceeded $2,050 per Ounce

In addition to new records in the stock markets, the reaction to yesterday's news about inflation in the US was also a decrease in government bond yields and a rapid rise in the price of gold — the cost of XAU/

Indices

Nasdaq-100 Price Hits All-time High after 4 Straight Months of Gains

The Nasdaq-100 index is holding above 18,000 today following yesterday's bullish momentum, fueled by inflation news. The PCE consumer spending index amounted to 0.4% on a monthly basis, which was in line with analysts' expectations. A year ago,

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.