GBP/USD started a downside correction from the 1.2275 zone. GBP/JPY declined and remains at a risk of more losses below 161.20.

Important Takeaways for GBP/USD and GBP/JPY

· The British Pound failed to gain strength above the 1.2275 zone against the US Dollar.

· There is a major bullish trend line forming with support near 1.2110 on the hourly chart of GBP/USD.

· GBP/JPY declined steadily after it failed to clear the 163.65 resistance zone.

· There was a break below a key rising channel with support near 162.00 on the hourly chart.

GBP/USD Technical Analysis

This past week, the British Pound found support near the 1.2000 zone against the US Dollar. The GBP/USD pair started a recovery wave and was able to settle above the 1.2100 zone.

There was a steady increase above the 1.2150 zone and the 50 hourly simple moving average. The pair even traded above the 1.2200 resistance zone. However, the bears were active near the 1.2275 and 1.2280 levels.

A high was formed near 1.2276 on FXOpen and the pair is now correcting lower. There was a move below the 1.2200 support zone. It even broke the 1.2150 level and the 50 hourly simple moving average.

A low is formed near 1.2100 and the pair is now consolidating losses. It is facing resistance near the 1.2140 level or the 23.6% Fib retracement level of the recent decline from the 1.2276 swing high to 1.2100 level.

The next major resistance is near the 1.2180 level and the 50 hourly simple moving average. It is near the 50% Fib retracement level of the recent decline from the 1.2276 swing high to 1.2100 level. An upside break above 1.2180 might start a fresh increase towards 1.2275.

An immediate support is near the 1.2110. There is also a major bullish trend line forming with support near 1.2110 on the hourly chart of GBP/USD.

The next major support is near the 1.2060 level. If there is a break below the 1.2060 support, the pair could test the 1.2000 support. Any more losses might send GBP/USD towards 1.1950.

GBP/JPY Technical Analysis

The British Pound started a fresh decline from the 163.80 zone against the Japanese Yen. The GBP/JPY pair gained pace below the 163.20 and 163.00 support levels.

There was a clear move below the 162.50 level and the 50 hourly simple moving average. There was a break below a key rising channel with support near 162.00 on the hourly chart. The pair even declined below 161.50 support and traded as low as 163.00.

Recently, there was an upside correction above the 162.00 level, but the pair struggled to surpass the 162.80 level. A high is formed near 162.78 and the pair is now declining. There was a clear move below the 50% Fib retracement level of the upward move from the 161.26 swing low to 162.78 high.

It is now consolidating losses below the 161.80 level. It is also trading below the 76.4% Fib retracement level of the upward move from the 161.26 swing low to 162.78 high. On the downside, an initial support is near the 161.25 level.

The next major support is near the 161.00. If there is a downside break below the 161.00 support, the pair could decline towards the 160.50 support zone. Any more losses might send the pair towards the 160.00 level in the near term.

On the upside, GBP/JPY is facing resistance near the 162.00 level. The next key resistance could be 162.20 and the 50 hourly simple moving average. A clear break above the 162.20 resistance could push the pair towards the 163.00 resistance.

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.

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