GBP/USD Eyes More Gains, EUR/GBP Could Correct Higher
GBP/USD started a fresh increase above the 1.2000 zone. EUR/GBP might attempt a recovery wave if it clears the 0.8430 resistance.
Important Takeaways for GBP/USD and EUR/GBP
· The British Pound started a fresh increase from the 1.1850 zone against the US Dollar.
· There is a key bullish trend line forming with support near 1.2120 on the hourly chart of GBP/USD.
· EUR/GBP declined below the 0.8450 and 0.8400 support levels .
· There was a break above a major bearish trend line with resistance near 0.8385 on the hourly chart.
GBP/USD Technical Analysis
The British Pound formed base above the 1.1850 and 1.1880 levels against the US Dollar. The GBP/USD pair started a fresh increase after it clearly broke the 1.2000 resistance.
There was a steady move above the 1.2050 level and the 50 hourly simple moving average. The bulls even pumped the pair above the 1.2120 level. A high was formed near 1.2245 on FXOpen the pair is now consolidating gains.
There was a minor decline below 1.2120, but the bulls were active near 1.2065. There is also a key bullish trend line forming with support near 1.2120 on the hourly chart of GBP/USD.
The pair is now rising and broke the 50% Fib retracement level of the downward move from the 1.2245 swing high to 1.2064 low. There was a steady increase above the 1.2150 level and the 50 hourly simple moving average.
On the upside, an initial resistance is near the 1.2195 level. The next main resistance is near the 1.2200 zone. It is near the 76.4% Fib retracement level of the downward move from the 1.2245 swing high to 1.2064 low.
A clear upside break above the 1.2200 and 1.2210 resistance levels could open the doors for a steady increase in the near term. The next major resistance sits near the 1.2250 level.
If not, the pair might start a fresh decline below 1.2150. The next major support is near the 1.2120 level. Any more losses could lead the pair towards the 1.2065 support zone or even 1.2000.
EUR/GBP Technical Analysis
The Euro struggled to continue higher above the 0.8580 level against the British Pound. The EUR/GBP pair started a fresh decline and traded below the 0.8500 support.
The pair even traded below the 0.8450 level and the 50 hourly simple moving average. It traded as low as 0.8345 and is currently attempting an upside break. There was a break above a major bearish trend line with resistance near 0.8385 on the hourly chart.
It is trading above the 0.8385 level and the 50 hourly simple moving average. An immediate resistance is near the 0.8400 level or the 23.6% Fib retracement level of the key decline from the 0.8583 high to 0.8345 low.
The next major resistance for the bulls is near the 0.8465 level. It is near the 50% Fib retracement level of the key decline from the 0.8583 high to 0.8345 low. A clear move above the 0.8465 resistance might push the price higher.
On the downside, an initial support is near the 0.8385 level. The next major support is near 0.8350. A downside break below the 0.8350 support might call for more downsides. In the stated case, the pair could decline towards the 0.8300 support 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.