GBP/USD found support near 1.3825 and it is now showing positive signs. GBP/JPY is stable above 149.40 and it is now facing hurdles near 150.00.
Important Takeaways for GBP/USD and GBP/JPY
- The British Pound tested the 1.3825 support zone and it is now recovering against the US Dollar.
- There was a break above a major contracting triangle with resistance near 1.3885 on the hourly chart of GBP/USD.
- GBP/JPY is holding the main 149.40 and 149.20 support levels.
- There was a break above a key bearish trend line with resistance near 149.65 on the hourly chart.
GBP/USD Technical Analysis
This past week, the British Pound saw a steady decline below the 1.3950 support zone against the US Dollar. The GBP/USD pair even broke the 1.3880 support level.
However, the pair found support near the 1.3825 zone. A low was formed near 1.3823 on FXOpen and the pair recently started a fresh increase. It broke the 1.3850 and 1.3880 resistance levels.
There was also a break above a major contracting triangle with resistance near 1.3885 on the hourly chart of GBP/USD. Moreover, there was a break above the 50% Fib retracement level of the key decline from the 1.3949 swing high to 1.3823 low.
The pair is now trading nicely above the 1.3750 level and the 50 hourly simple moving average. It is testing the 61.8% Fib retracement level of the key decline from the 1.3949 swing high to 1.3823 low.
If there is a clear upside break above the 1.3900 and 1.3920 levels, there are chances of more upsides. In the stated case, the pair is likely to accelerate higher towards the 1.4000 resistance.
If there is a fresh decline, the previous resistance near 1.3880 or the 50 hourly simple moving average might provide support. If there are additional losses, the pair could decline towards the 1.3850 level.
GBP/JPY Technical Analysis
The British Pound started a strong decline from the 152.00 zone against the Japanese Yen. The GBP/JPY pair settled below the 150.00 level, but the bulls were active near the 149.00 zone.
A low is formed near 149.05 and the pair is now recovering higher. There was a break above the 149.50 resistance zone. Moreover, there was a break above a key bearish trend line with resistance near 149.65 on the hourly chart.
The pair is now consolidating near the 23.6% Fib retracement level of the key decline from the 151.97 high to 149.05 low. An immediate resistance is near the 149.85 level and the 50 hourly simple moving average.
The next major resistance could be near the 150.50 level. It is close to the 50% Fib retracement level of the key decline from the 151.97 high to 149.05 low.
A clear upside break above the 150.50 level could open the doors for a larger increase. In the stated case, the pair is likely to grind higher towards the 151.20 and 151.50 levels in the near term.
If not, there is a risk of a fresh decline towards the 149.20 and 149.00 support levels. Any more losses could spark a sharp decline towards the 148.50 level in the near term. The next major support sits near the 147.80 level, where the bulls might take a stand.
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.
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.