GBP/USD and GBP/JPY: British Pound Facing Hurdles

FXOpen

GBP/USD started a decent recovery from the 1.2250 support zone and climbed above 1.2350. GBP/JPY is also rising, but facing hurdles near the 133.50 level.

Important Takeaways for GBP/USD and GBP/JPY

  • The British Pound is currently correcting higher and testing the 1.2400-1.2410 resistance zone.
  • There was a break above a major bearish trend line with resistance near 1.2365 on the hourly chart of GBP/USD.
  • GBP/JPY is currently facing a strong resistance near the 133.50 and 133.80 levels.
  • There is a major bearish trend line forming with resistance near 133.45 on the hourly chart.

GBP/USD Technical Analysis

This past week, the British Pound followed a bearish path and traded below the 1.2425 support area against the US Dollar. The GBP/USD pair broke the 1.2350 support level before it found support above 1.2250.

Recently, there was a decent recovery wave above the 1.2300 level. The pair broke the 1.2350 resistance level and the 50 hourly simple moving average. The recent swing low was formed near 1.2298 on FXOpen before it climbed above 1.2350.

GBP/USD Technical Analysis British Pound US Dollar

There was a break above the 76.4% Fib retracement level of the downward move from the 1.2414 high to 1.2298 high. Besides, there was a break above a major bearish trend line with resistance near 1.2365 on the hourly chart of GBP/USD.

The pair is now approaching the 1.2410 resistance area and the last swing high. It seems like there is a major hurdles forming near 1.2410-1.2425. A successful close above the 1.2425 pivot level might push the pair further higher.

The next key resistance is near the 1.2480. It is close to the 1.618 Fib extension level of the downward move from the 1.2414 high to 1.2298 high.

Any further gains could lead the pair towards the 1.2500 and 1.2520 levels. Conversely, the pair may fail to surpass the 1.2425 resistance and it might decline back towards the 1.2350 support area or the 50 hourly SMA.

GBP/JPY Technical Analysis

The British Pound also followed a similar path this past week and tested the 132.00 support area against the Japanese Yen. The GBP/JPY pair traded as low as 131.90 and recently started a nice upward move.

There was a break above the 132.40 and 132.50 resistance levels. Besides, the pair surpassed the 133.00 level and the 50 hourly simple moving average.

GBP/JPY Technical Analysis Pound Yen

There was a break above the 38.2% Fib retracement level of the downward move from the 134.96 swing high to 131.90 low. However, the pair is now facing a strong resistance near the 133.40-133.50 zone (the previous support).

More importantly, there is a major bearish trend line forming with resistance near 133.45 on the hourly chart. The trend line is close to the 50% Fib retracement level of the downward move from the 134.96 swing high to 131.90 low.

If the pair clears the 133.45 resistance, it could test the next hurdle near the 133.80 level. A successful close above the 133.80 resistance is needed for more upsides towards the 134.00 and 134.50 levels in the near term.

On the other hand, GBP/JPY might struggle to clear the 133.45 and 133.80 resistance levels. On the downside, an initial support is near the 132.80 level, below which the pair might find support near 132.40. Any further losses could lead the pair towards 132.00.

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.

Stay ahead of the market!

Subscribe now to our mailing list and receive the latest market news and insights delivered directly to your inbox.

forex

Forex Trading with FXOpen

Forex Trading with FXOpen

Experience ECN technology for deep liquidity and light-speed trade execution

  • Access over 50 markets
  • Trade with spreads from 0.0 pips
  • Take advantage of commissions from $1.50/lot
Learn more

Latest articles

USD/CAD Consolidates
Forex Analysis

USD/CAD Consolidates

In the second half of April, the USD/CAD chart has shown a decline in volatility following significant spikes observed since February.

The Canadian dollar has stabilised against the US dollar within the 1.390–1.380 range over the

Why Coinbase (COIN) Shares Are Rising
Shares

Why Coinbase (COIN) Shares Are Rising

As the Coinbase (COIN) stock chart shows, trading closed yesterday above the $200 mark — for the first time since March.

Since the beginning of April, COIN's share price has risen by nearly 20%, while the S&P 500 index

Forex Analysis

USD/CHF Rebounds from Multi-Year Low

As the charts show, the USD/CHF exchange rate fell below 0.810 US dollars per franc earlier this week. The pair had not traded this low since the 2008 financial crisis. Demand for the Swiss franc as a safe-haven

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.