GBP/USD and GBP/JPY: British Pound At Risk of More Downsides

FXOpen

GBP/USD failed twice near the 1.3250 resistance area and declined sharply. GBP/JPY is also trading in a negative zone and it could continue to move down if it breaks the 138.35 support.

Important Takeaways for GBP/USD and GBP/JPY

  • The British Pound started a major decline after it failed to clear 1.3250 and 1.3260.
  • There is a short-term breakout pattern forming with resistance near 1.3100 on the hourly chart of GBP/USD.
  • GBP/JPY also declined sharply after it failed to surpass the 140.00 resistance zone.
  • There is a key declining channel forming with resistance near 138.58 on the hourly chart.

GBP/USD Technical Analysis

This past week, the British Pound made another attempt to gain pace above the 1.3250 resistance against the US Dollar. However, the GBP/USD pair failed to continue higher and started a sharp decline.

A high was formed near 1.3254 on FXOpen and the pair dived below the 1.3150 support. There was also a break below the 1.3120 support zone and the 50 hourly simple moving average. The pair traded close to the 1.3050 support and a low is formed near 1.3059.

GBP/USD Technical Analysis Pound Dollar

It is currently consolidating losses and trading above 1.3080. It seems like there is a short-term breakout pattern forming with resistance near 1.3100 on the hourly chart of GBP/USD.

Above the triangle resistance, the first resistance is near the 1.3150 level. It is close to the 23.6% Fib retracement level of the recent decline from the 1.3254 high to 1.3059 low. On the upside, the next key resistance might be 1.3150 or the 50 hourly simple moving average.

The main resistance is near the 1.3160 level since it is close to the 50% Fib retracement level of the recent decline from the 1.3254 high to 1.3059 low. Any further gains could lead the pair towards the 1.3250 barrier in the near term.

Conversely, the pair could continue to decline below the 1.3060 and 1.3050 support levels. The next major support for the bulls might be 1.3000.

GBP/JPY Technical Analysis

The British Pound also followed a similar path from the 140.00 resistance against the Japanese Yen. The GBP/JPY pair broke the 139.20 support to move into a short-term bearish zone.

There was also a break below the 138.80 support and the pair settled below the 50 hourly simple moving average. A low is formed near 138.24 and the pair is currently correcting higher. It seems to be facing hurdles near the 138.60 zone.

GBP/JPY Technical Analysis Pound Yen

There is also a key declining channel forming with resistance near 138.58 on the hourly chart. The channel resistance is close to the 23.6% Fib retracement level of the recent decline from the 139.94 high to 138.24 low.

If there is an upside break above the 138.60 resistance, there are chances of a steady rise in the coming sessions. The next key resistance for the bulls might be near the 139.00 zone.

The 50% Fib retracement level of the recent decline from the 139.94 high to 138.24 low is also near the 139.10 level to act as a hurdle. Conversely, the pair could break the 138.30 support level and continue to move down.

The next major support on the downside is near the 138.00 level, below which there are high chances of a sustained downward move.

Trade global forex with the Innovative Broker of 2022*. Choose from 50+ forex markets 24/5. Open your FXOpen account now or learn more about trading forex with FXOpen.

* FXOpen International, Innovative Broker of 2022, according to the IAFT

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: The American Currency Resumes Growth EUR/USD Analysis: The Rate Updates Its Multi-month Low Market Analysis: Dollar Falls After Inflation Data Release Euro Analysis: ECB Cautions Against Rate Cuts Amid Inflation Battle Market Analysis: GBP/USD Struggles While EUR/GBP Eyes Increase

Latest articles

Shares

Top 5 Stocks to Watch in October: Bank on the Backfoot, No Thirst for Coca-Cola, Tech Giant Takes Dip and Electric Vehicle Volatility

October is here, and as the markets enter a new month, we take a closer look at five stocks that could be of significant interest to investors. 1) Bank of AmericaBank of America stock has taken a dive over the

Forex Analysis

Market Analysis: The American Currency Resumes Growth

The beginning of October turned out to be favourable for continued growth in the US dollar. From the data published yesterday, it follows that in September, the US manufacturing business activity index (PMI) rose to 49.0 against the forecast

Forex Analysis

EUR/USD Analysis: The Rate Updates Its Multi-month Low

Never in its history has the euro fallen for 11 weeks in a row against the dollar, but it happened. The minimum has been set for 2023. The reason seems to be that in an environment where central banks are

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. 60% 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.