GBP/USD started a fresh decline from well above 1.3640 and traded below 1.3400. GBP/JPY is also declining and trading below 135.00.
Important Takeaways for GBP/USD and GBP/JPY
· The British Pound started a fresh decline from well above 1.3600 against the US Dollar.
· There is a key bearish trend line forming with resistance near 1.3450 on the hourly chart of GBP/USD.
· GBP/JPY also started a fresh decline after it failed to clear the 156.75 resistance.
· There was a break below a short-term contracting triangle with support near 154.65 on the hourly chart.
GBP/USD Technical Analysis
After facing resistance near 1.3620, the British Pound found started a fresh decline against the US Dollar. The GBP/USD pair gained pace below the 1.3500 support zone to enter a bearish zone.
There was also a break below the 1.3450 zone and the 50 hourly simple moving average. It traded as high as 1.3269 on FXOpen and is currently correcting losses. There was a minor recovery wave above the 1.3350 level.
The pair climbed above the 23.6% Fib retracement level of the downward move from the 1.3620 swing high to 1.3269 low.
However, the pair faced a strong resistance near the 1.3450 level. There is also a key bearish trend line forming with resistance near 1.3450 on the hourly chart of GBP/USD. The trend line is near the 50% Fib retracement level of the downward move from the 1.3620 swing high to 1.3269 low.
The next major hurdle is near 1.3500, above which the pair could surge towards 1.3550 in the near term. If there is no upside break, the pair could correct lower below 1.3320.
The next major support is near the 1.3300 level. If there is a break below the 1.3300 support, the pair could test the 1.3250 support. If there are additional losses, the pair could decline towards the 1.3200 level.
GBP/JPY Technical Analysis
The British Pound also started a fresh decline from well above 156.50 against the Japanese Yen. The GBP/JPY pair traded below the 155.50 support zone to enter a bearish zone.
There was a clear move below the 155.00 level and the 50 hourly simple moving average. The pair traded as low as 153.35 and recently corrected higher.
There was a move above the 38.2% Fib retracement level of the recent decline from the 156.77 high to 153.35 low. However, the bears remained active near the 155.00 resistance level.
They also protected the 50% Fib retracement level of the recent decline from the 156.77 high to 153.35 low. The pair started another decline below the 154.60 level. There was also a break below a short-term contracting triangle with support near 154.65 on the hourly chart.
If there is a downside break below the 154.20 support, the pair could decline towards the 153.50 support zone. Any more losses might send the pair towards the 153.00 level in the near term.
On the upside, GBP/JPY is facing resistance near the 154.55 level. The next key resistance could be 155.00. A clear break above the 155.00 resistance could push the pair towards the 156.20 resistance.
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.
* FXOpen International, best ECN broker of 2021, according to the IAFT