GBP/USD started a fresh decline below the 1.2200 support zone. EUR/GBP is rising and trading above the 0.8920 support zone.
Important Takeaways for GBP/USD and EUR/GBP
· The British Pound started a fresh decline from the 1.2150 resistance against the US Dollar.
· There is a major bearish trend line forming with resistance near 1.2000 on the hourly chart of GBP/USD.
· EUR/GBP found support near 0.8780 and is currently recovering higher.
· There is a key bullish trend line forming with support near 0.8805 on the hourly chart.
GBP/USD Technical Analysis
The British Pound started a major decline from the 1.2150 resistance zone against the US Dollar. The GBP/USD pair gained pace below the 1.2050 level to move into a bearish zone.
There was a clear move below the 1.2000 level and the 50 hourly simple moving average. The bears even pumped the price below the 1.1950 level and a low is formed near 1.1928 on FXOpen. It is now consolidating losses and trading below the 1.2000 level.
On the upside, an initial resistance is near the 1.1985 level. It is near the 50% Fib retracement level of the downward move from the 1.2041 swing high to 1.1928 low.
The first major resistance is near the 1.2000 level. There is also a major bearish trend line forming with resistance near 1.2000 on the hourly chart of GBP/USD. The trend line is near the 61.8% Fib retracement level of the downward move from the 1.2041 swing high to 1.1928 low.
A clear move above the 1.2000 level could spark a decent increase. The next major resistance sits near the 1.2020 level. Any more gains might send the pair towards the 1.2100 resistance zone.
On the downside, an initial support is near the 1.1925 level. The next major support is near the 1.1880 level. Any more losses could lead the pair towards the 1.1800 support zone.
EUR/GBP Technical Analysis
The Euro started a steady decline from well above the 0.8900 zone against the British Pound. The EUR/GBP pair declined below the 0.8860 and 0.8850 support levels.
A low is formed near 0.8783 and the pair is now correcting losses. It climbed above the 0.8800 resistance zone. There was a move above the 23.6% Fib retracement level of the downward move from the 0.8928 swing high to 0.8783 low.
It is now trading above the 0.8815 level and the 50 hourly simple moving average. There is also a key bullish trend line forming with support near 0.8805 on the hourly chart.
On the upside, an immediate resistance is near the 0.8840 level. The next major resistance for the bulls is near the 0.8855 level or the 50% Fib retracement level of the downward move from the 0.8928 swing high to 0.8783 low, above which the pair might test the 0.8875 resistance.
Any more gains might send the pair towards the 0.8920 level. On the downside, an initial support is near the 0.8815 level or the 50 hourly simple moving average. The next major support is near 0.8800 and the trend line.
A downside break below the 0.8800 support might call for more downsides. In the stated case, the pair could decline towards the 0.8750 support level in the near term.
This forecast represents FXOpen Companies opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Companies products and services or as financial advice.
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