News & Analysis / Analysis / GBP/USD and GBP/JPY Could Extend Losses

GBP/USD and GBP/JPY Could Extend Losses

FXOpen

GBP/USD started a major decline and traded below 1.1500. GBP/JPY is consolidating above the 160.80 support, with a bearish angle.

Important Takeaways for GBP/USD and GBP/JPY

· The British Pound started a major decline below the 1.1620 support against the US Dollar.

· There is a major bearish trend line forming with resistance near 1.1520 on the hourly chart of GBP/USD.

· GBP/JPY declined steadily after it failed to clear the 162.50 resistance zone.

· There was a break below a key bullish trend line with support near 161.15 on the hourly chart.

GBP/USD Technical Analysis

This past week, the British Pound started a major decline from the 1.1880 zone against the US Dollar. The GBP/USD pair declined below the 1.1800 support to move into a bearish zone.

There was a steady decline below the 1.1700 level and the 50 hourly simple moving average. The pair even traded below the 1.1620 support zone. The pair traded as low as 1.1460 on FXOpen and is currently consolidating losses.

GBP/USD Hourly Chart

An immediate resistance on the upside is near the 1.1510 level. It is near the 38.2% Fib retracement level of the recent decline from the 1.1588 swing high to 1.1460 level.

The next major resistance is near the 1.1520 level and the 50 hourly simple moving average. There is also a major bearish trend line forming with resistance near 1.1520 on the hourly chart of GBP/USD. The trend line is near the 50% Fib retracement level of the recent decline from the 1.1588 swing high to 1.1460 level.

An upside break above 1.1520 might start a fresh increase towards 1.1550. Any more gains might call for a move towards 1.1585 or even 1.1620. An immediate support is near the 1.1460. The next major support is near the 1.1400 level.

If there is a break below the 1.1400 support, the pair could test the 1.1350 support. Any more losses might send GBP/USD towards 1.1300.

GBP/JPY Technical Analysis

The British Pound started a fresh decline from the 162.50 zone against the Japanese Yen. The GBP/JPY pair gained pace below the 161.80 and 161.50 support levels.

There was a clear move below the 161.20 level and the 50 hourly simple moving average. There was a break below a key bullish trend line with support near 161.15 on the hourly chart. The pair even declined below 161.00 support and traded as low as 160.80.

GBP/JPY Hourly Chart

It is now consolidating losses above the 160.80 support zone. An immediate resistance on the upside is near the 161.20 zone. It is near the 23.6% Fib retracement level of the downward move from the 162.48 swing high to 160.80 low.

The next key resistance could be 161.60 and the 50 hourly simple moving average. It is near the 50% Fib retracement level of the downward move from the 162.48 swing high to 160.80 low.

A clear break above the 161.60 resistance could push the pair towards the 162.50 resistance. On the downside, an initial support is near the 160.80 level. The next major support is near the 160.50. If there is a downside break below the 160.50 support, the pair could decline towards the 160.00 support zone. Any more losses might send the pair towards the 158.80 level in the near term.

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.

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

Instrument
Live ECN bid
Live ECN ask
Action
EURUSD
1.05049
1.05051
Trade
GBPUSD
1.26501
1.26502
Trade
AUDUSD
0.63307
0.63308
Trade
USDJPY
149.314
149.318
Trade
USDCAD
1.43218
1.43225
Trade
More
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

Shares

Nike (NKE) Shares Surge 5%

The sportswear giant was among the top performers in the US stock market yesterday after Jefferies analysts raised their outlook:
→ Upgraded NKE stock from “Hold” to “Buy”
→ Increased the price target from $75 to $115

Amid fierce competition, NKE shares

Cryptocurrencies

BTC/USD Analysis: Why Bitcoin’s Price Dropped Below $90K

The BTC/USD chart shows Bitcoin dipping below $89K today—the first time since November 2024, when the leading cryptocurrency surged on news of Donald Trump’s presidential victory.

We previously posted:
→ 28 January: Bitcoin Holds Above $100K—For Now

Market Insights with Gary Thomson: Canada’s GDP Growth, US PCE Price Index, Gold, Earnings Reports
Financial Market News

Market Insights with Gary Thomson: Canada’s GDP Growth, US PCE Price Index, Gold, Earnings Reports

In this video, we’ll explore the key economic events, market trends, and corporate news shaping the financial landscape. Get ready for expert insights into forex, commodities, and stocks to help you navigate the week ahead. Let’s dive in!

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.