GBP/USD and GBP/JPY Could Extend Losses

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.

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.

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.