GBP/USD is gaining pace above the 1.2100 zone. GBP/JPY is also rising and might gain pace if it clears the 160.20 resistance zone.
Important Takeaways for GBP/USD and GBP/JPY
· The British Pound is showing positive signs above 1.2000 against the US Dollar.
· There was a break above a major bearish trend line with resistance near 1.2065 on the hourly chart of GBP/USD.
· GBP/JPY started a fresh increase above the 158.50 resistance zone.
· There is a key contracting triangle is forming with resistance near 160.00 on the hourly chart.
GBP/USD Technical Analysis
This past week, the British Pound found support near the 1.1840 zone against the US Dollar. The GBP/USD pair formed a base and started a steady recovery wave above the 1.2000 level.
There was a clear move above the 1.2050 resistance and the 50 hourly simple moving average. During the increase, there was a break above a major bearish trend line with resistance near 1.2065 on the hourly chart of GBP/USD.
The pair even cleared the 1.2100 resistance. A high is formed near 1.2136 on FXOpen and the pair started a consolidation phase.
An immediate resistance on the upside is near the 1.2140 level. The next major resistance is near the 1.2200 level, above which the pair could start a steady increase towards 1.2250. An upside break above 1.2250 might start a fresh increase towards 1.2320. Any more gains might call for a move towards 1.2400 or even 1.2500.
An immediate support is near the 1.2080. The next major support is near the 1.2065 level. It is near the 23.6% Fib retracement level of the upward move from the 1.1841 swing low to 1.2136 high.
If there is a break below the 1.2065 support, the pair could test the 1.2050 support. It is near the 50% Fib retracement level of the upward move from the 1.1841 swing low to 1.2136 high. Any more losses might send GBP/USD towards 1.1820.
GBP/JPY Technical Analysis
The British Pound started a fresh increase from the 155.35 zone against the Japanese Yen. The GBP/JPY pair gained pace for a move above the 158.00 and 158.50 resistance levels.
There was also a close above the 159.00 level and the 50 hourly simple moving average. The pair traded as high as 160.17 and is currently consolidating gains. An immediate resistance on the upside is near the 160.00 zone.
There is also a key contracting triangle is forming with resistance near 160.00 on the hourly chart. The next key resistance could be 160.20.
A clear break above the 160.20 resistance could push the pair towards the 161.20 resistance. If not, the pair might decline below the 23.6% Fib retracement level of the upward move from the 155.35 swing low to 160.17 high.
On the downside, an initial support is near the 158.80 level. The next major support is near the 157.75. It is near the 50% Fib retracement level of the upward move from the 155.35 swing low to 160.17 high.
If there is a downside break below the 157.75 support, the pair could decline towards the 157.00 support zone in the coming sessions. Any more losses might call for a test of the 155.50 support zone.
This forecast represents FXOpen Companies opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Companies 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.