GBP/USD Drops Sharply While EUR/GBP Gains Momentum

FXOpen

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 1.2400 resistance against the US Dollar.

· There is a key bearish trend line forming with resistance near 1.2120 on the hourly chart of GBP/USD.

· EUR/GBP started a steady increase above the 0.8900 and 0.8920 levels.

· There is a major bullish trend line forming with support near 0.8945 on the hourly chart.

GBP/USD Technical Analysis

The British Pound started a major decline from well above the 1.2350 level against the US Dollar. The GBP/USD pair gained pace below the 1.2300 level to move into a bearish zone.

There was a clear move below the 1.2200 level and the 50 hourly simple moving average. The bears even pumped the price below the 1.2120 level and a low is formed near 1.2031 on FXOpen. It is now consolidating losses and trading below the 1.2100 level.

GBP/USD Hourly Chart

On the upside, an initial resistance is near the 1.2100 level. The first major resistance is near the 1.2120 level. It is close to the 23.6% Fib retracement level of the downward move from the 1.2400 swing high to 1.2031 low.

There is also a key bearish trend line forming with resistance near 1.2120 on the hourly chart of GBP/USD. A clear move above the 1.2120 level could spark a decent increase.

The next major resistance sits near the 1.2215 level or the 50% Fib retracement level of the downward move from the 1.2400 swing high to 1.2031 low. Any more gains might send the pair towards the 1.2250 resistance zone.

On the downside, an initial support is near the 1.2030 level. The next major support is near the 1.2000 level. Any more losses could lead the pair towards the 1.1920 support zone.

EUR/GBP Technical Analysis

The Euro started a steady fresh increase from the 0.8750 support zone against the British Pound. The EUR/GBP pair climbed above the 0.8820 zone to move into a bullish zone.

The pair even traded above the 0.8920 level and the 50 hourly simple moving average. Finally, there was a move above the 0.8950 level. The pair traded as high as 0.8978 and is currently correcting gains. There was a minor decline below the 0.8965 level.

EUR/GBP Hourly Chart

The pair declined below the 23.6% Fib retracement level of the upward move from the 0.8877 swing low to 0.8978 high. The pair is now consolidating near the 0.8950 level.

On the downside, an initial support is near the 0.8945 level. There is also a major bullish trend line forming with support near 0.8945 on the hourly chart. The next major support is near 0.8925 or the 50 hourly simple moving average.

The 50% Fib retracement level of the upward move from the 0.8877 swing low to 0.8978 high is also near the 0.8925 zone. A downside break below the 0.8925 support might call for more downsides. In the stated case, the pair could decline towards the 0.8850 support level in the near term.

On the upside, an immediate resistance is near the 0.8975 level. The next major resistance for the bulls is near the 0.9000 level, above which the pair might test the 0.9040 resistance. Any more gains might send the pair towards the 0.9085 level.

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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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.

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