GBP/USD started a downside correction from the 1.2520 resistance zone. GBP/JPY is rising and might aim for more upsides above the 164.00 resistance.
Important Takeaways for GBP/USD and GBP/JPY
- The British Pound failed to break above the 1.2520 resistance and corrected lower against the US Dollar.
- There is a key bearish trend line forming with resistance near 1.2460 on the hourly chart of GBP/USD.
- GBP/JPY is slowly moving higher from the 163.00 zone.
- There is a key rising channel forming with support near 163.75 on the hourly chart.
GBP/USD Technical Analysis
This past week, the British Pound formed a base above the 1.2400 line against the US Dollar. The GBP/USD pair started a steady increase above the 1.2425 resistance.
There was a move above the 50-hour simple moving average at 1.2460. It resulted in a break above the 1.2500 level. However, the bears were active near the 1.2520 resistance zone. A high was formed near 1.2525, and the pair started a downside correction.
There was a break below the 23.6% Fib retracement level of the upward move from the 1.2274 swing low to the 1.2525 high. GBP/USD even settled below the 50-hour simple moving average.
The previous resistance at 1.2425 is now acting as a support. The next major support is near the 1.2400 level, which coincides with the 50% Fib retracement level of the upward move from the 1.2274 swing low to the 1.2525 high.
If there is a break below the 1.2400 support, the pair will substantially decline. In the stated case, there is a risk of a drop toward the 1.2330 level or the 1.2274 low in the coming days.
Conversely, the pair might attempt a fresh increase from the 1.2425 support. Resistance on the upside is near the 50-hour simple moving average at 1.2455. There is also a key bearish trend line forming with resistance near 1.2460 on the hourly chart of GBP/USD.
A close above the trend line resistance could stage a fresh increase. The hourly RSI is also moving higher and approaching 50, above which it might signal a decent increase. The next major resistance is near the 1.2500 level, above which the pair could revisit the 1.2520 resistance region. Any more gains might call for a move toward 1.2600.
GBP/JPY Technical Analysis
The British Pound started a fresh decline from the 166.40 zone against the Japanese Yen. The GBP/JPY pair declined below the 165.25 and 164.00 support levels.
It traded as low as 162.77, and the pair is now correcting higher. There was a move above the 163.00 pivot level. The bulls pushed the pair above the 23.6% Fib retracement level of the downward move from the 166.39 swing high to the 162.77 low.
It seems to be consolidating above the 50-hour simple moving average as the hourly RSI is flat above 50. Resistance on the upside is near the 164.00 zone.
The next key resistance could be near the 50% Fib retracement level of the downward move from the 166.39 swing high to the 162.77 low at 164.60. A clear break above the 164.60 resistance could push the pair toward the 165.25 resistance.
If not, the pair might start a fresh decline. On the downside, initial support is near a key rising channel on the hourly chart at 163.75.
A downside break below the channel support could encourage the bears to push the pair further lower. The next major support is near 163.00. Any more losses might call for a test of the 162.20 support level.
This forecast represents FXOpen Companies’ opinion only, it should not be construed as an offer, invitation, or recommendation with respect to FXOpen Companies’ products and services or as financial advice.
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