GBP/USD started a downside correction from the 1.2150 resistance. GBP/JPY is diving and there are chances of a move towards the 166.00 support.
Important Takeaways for GBP/USD and GBP/JPY
· The British Pound struggled to clear the 1.2150 resistance zone against the US Dollar.
· There is a key bullish trend line forming with support near 1.2040 on the hourly chart of GBP/USD.
· GBP/JPY started a fresh decline from the 169.00 resistance zone.
· There was a break below a major bullish trend line with support near 167.85 on the hourly chart.
GBP/USD Technical Analysis
This past week, the British Pound found support near the 1.1800 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. However, the pair struggled to clear the 1.2150 resistance zone. A high was formed near 1.2153 on FXOpen and the pair started a downside correction.
There was a move below the 1.2100 support and the 50 hourly simple moving average. The pair declined below the 23.6% Fib retracement level of the main increase from the 1.1778 swing low to 1.2153 high.
An immediate support is near the 1.2040. There is also a key bullish trend line forming with support near 1.2040 on the hourly chart of GBP/USD.
The next major support is near the 1.2000 level. If there is a break below the 1.2000 support, the pair could test the 1.1965 support or the 50% Fib retracement level of the main increase from the 1.1778 swing low to 1.2153 high. Any more losses might send GBP/USD towards 1.1880.
An immediate resistance on the upside is near the 1.2075 level. The next major resistance is near the 1.2120 level, above which the pair could start a steady increase towards 1.2150.
An upside break above 1.2150 might start a fresh increase towards 1.2250. Any more gains might call for a move towards 1.2320 or even 1.2400.
GBP/JPY Technical Analysis
The British Pound started a fresh decline from well above the 168.50 level against the Japanese Yen. The GBP/JPY pair declined below the 168.00 and 167.60 support levels.
There was also a close below the 167.50 level and the 50 hourly simple moving average. Besides, there was a break below a major bullish trend line with support near 167.85 on the hourly chart. The pair even traded below the 23.6% Fib retracement level of the upward move from the 163.07 swing low to 168.98 high.
On the downside, an initial support is near the 166.80 level. The next major support is near the 166.50. If there is a downside break below the 166.50 support, the pair could decline towards the 166.00 support zone.
The 50% Fib retracement level of the upward move from the 163.07 swing low to 168.98 high is also near 166.00. Any more losses might send the pair towards the 164.50 level in the near term.
An immediate resistance on the upside is near the 167.30 zone. The next key resistance could be 167.65. A clear break above the 167.30 resistance could push the pair towards the 168.80 resistance.
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.
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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.