GBP/USD found support near 1.3670 and it is now correcting higher. GBP/JPY is rising and it remains supported for more gains above 150.00
Important Takeaways for GBP/USD and GBP/JPY
- The British Pound declined below 1.3800, but it found support near 1.3670 against the US Dollar.
- There was a break above a major bearish trend line with resistance near 1.3740 on the hourly chart of GBP/USD.
- GBP/JPY is trading nicely above the 150.00 and 150.20 resistance levels.
- There was also a break above a key bearish trend line with resistance near 149.20 on the hourly chart.
GBP/USD Technical Analysis
This past week, the British Pound saw a bearish wave below the 1.3850 support zone against the US Dollar. The GBP/USD pair even broke the 1.3720 support level.
However, the pair found support near the 1.3670 zone. A low was formed near 1.3670 on FXOpen and the pair recently started a fresh increase. It broke the 1.3700 and 1.3720 resistance levels.
There was also a break above a major bearish trend line with resistance near 1.3740 on the hourly chart of GBP/USD. The pair is now trading nicely above the 1.3750 level and the 50 hourly simple moving average.
It is testing the 38.2% Fib retracement level of the key decline from the 1.4001 high to 1.3670 low. The first major resistance on the upside is near the 1.3825 level.
The next major resistance is near 1.3835 level or the 50% Fib retracement level of the key decline from the 1.4001 high to 1.3670 low. A clear upside break above the 1.3825 and 1.3835 resistance levels could open the doors for a larger increase.
If there is a fresh decline, the previous resistance near 1.3740 or the 50 hourly simple moving average might provide support. If there are additional losses, the pair could decline towards the 1.3700 level.
GBP/JPY Technical Analysis
The British Pound followed a similar pattern from the 148.50 zone against the Japanese Yen. The GBP/JPY pair traded as low as 148.52 before starting an upside correction.
The pair broke the 149.50 resistance level to move into a positive zone. There was a clear break above a key bearish trend line with resistance near 149.20 on the hourly chart. The pair surpassed the 50% Fib retracement level of the key decline from the 152.53 high to 148.52 low.
The pair settled nicely above the 150.00 level and the 50 hourly simple moving average. It even tested the 76.4% Fib retracement level of the key decline from the 152.53 high to 148.52 low.
GBP/JPY is now consolidating gains and trading inside a bullish flag with support near 150.90 on the same chart. If there is a downside break, the pair could test the 150.40 support.
The 50 hourly simple moving average is also near the 150.40 level. Any more losses might call for a test of the 150.00 level. On the upside, the pair is facing hurdles near the 151.50 and 151.60 levels.
A clear upside break above the 151.60 level could open the doors for a larger increase. In the stated case, the pair is likely to grind higher towards the 152.50 and 152.80 levels in the near term.
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