GBP/USD and GBP/JPY Could Resume Increase

GBP/USD started a fresh increase from the 1.3350 zone and climbed above 1.3600. GBP/JPY is also rising, but it is facing resistance near 156.50.

Important Takeaways for GBP/USD and GBP/JPY

· The British Pound started a fresh increase above the 1.3400 and 1.3500 resistance levels against the US Dollar.

· There was a break below a key bullish trend line with support near 1.3550 on the hourly chart of GBP/USD.

· GBP/JPY also started a steady increase above the 155.00 and 155.50 resistance levels.

· There is a major bullish trend line forming with support near 155.55 on the hourly chart.

GBP/USD Technical Analysis

After a major decline, the British Pound found support near the 1.3350 zone against the US Dollar. The GBP/USD pair started a fresh increase above the 1.3400 and 1.3450 resistance levels to move into a positive zone.

There was also a break above the 1.3550 zone and the 50 hourly simple moving average. It traded as high as 1.3627 on FXOpen and is currently correcting gains.

There was a decline below the 1.3600 level and the 50 hourly simple moving average. The pair traded below the 38.2% Fib retracement level of the upward move from the 1.3357 swing low to 1.3627 high. Besides, there was a break below a key bullish trend line with support near 1.3550 on the hourly chart of GBP/USD.

On the downside, an immediate support is near the 1.3500 level. The next major support is near the 1.3590 level. It is near the 50% Fib retracement level of the upward move from the 1.3357 swing low to 1.3627 high.

If there is a break below the 1.3590 support, the pair could test the 1.3550 support. If there are additional losses, the pair could decline towards the 1.3500 level.

On the upside, the pair is facing resistance near the 1.3560 level. The next major hurdle is near 1.3625, above which the pair could surge towards 1.3750 in the near term.

GBP/JPY Technical Analysis

The British Pound also started a decent increase from the 153.80 support zone against the Japanese Yen. The GBP/JPY pair broke the 155.00 resistance zone to enter a positive zone.

There was a clear move above the 156.00 level and the 50 hourly simple moving average. The pair traded as high as 156.50 before there was a downside correction. The pair declined below the 156.20 support level.

There was a move below the 38.2% Fib retracement level of the upward move from the 154.80 swing low to 136.50 high. However, the bulls protected the 155.65 support.

The pair remained above the 50% Fib retracement level of the upward move from the 154.80 swing low to 136.50 high. There is also a major bullish trend line forming with support near 155.55 on the hourly chart.

If there is a downside break below the 155.55 support, the pair could decline towards the 155.00 support zone. Any more losses might send the pair towards the 154.00 level in the near term.

On the upside, GBP/JPY is facing resistance near the 156.25 level. The next key resistance could be 156.50. A clear break above the 156.50 resistance could push the pair towards the 157.20 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.