GBP/USD Eyes More Upsides, EUR/GBP Holding Key Support

FXOpen

GBP/USD is showing positive signs above 1.3800 and 1.3780. EUR/GBP is showing bearish signs and it is testing a major support near 0.8640.

Important Takeaways for GBP/USD and EUR/GBP

  • The British Pound started a decent increase from the 1.3720 support zone.
  • There was a break above a key contracting triangle with resistance near 1.3780 on the hourly chart of GBP/USD.
  • EUR/GBP failed to continue higher above 0.8720 and corrected lower.
  • There was a break below a major contracting triangle with support near 0.8685 on the hourly chart.

GBP/USD Technical Analysis

After forming a support base above 1.3700, the British Pound started a fresh increase against the US Dollar. The GBP/USD pair broke the 1.3750 and 1.3800 resistance levels to move into a positive zone.

There was also a close above the 1.3800 level and the 50 hourly simple moving average. During the increase, there was a break above a key contracting triangle with resistance near 1.3780 on the hourly chart of GBP/USD.

GBP/USD Technical Analysis Pound Dollar

The pair climbed above the 1.3820 level and traded as high as 1.3843 on FXOpen. Recently, there was a downside correction from the 1.3843 high.

The pair tested the 23.6% Fib retracement level of the upward move from the 1.3716 swing low to 1.3843 high at 1.3813. The next major support on the downside is near the 1.3800 zone (the recent breakout zone).

Any more losses could initiate a drop towards the 1.3780 support or the 50 hourly simple moving average. The 50% Fib retracement level of the upward move from the 1.3716 swing low to 1.3843 high is also near the 1.3780 level.

On the upside, the 1.3840 and 1.3850 levels are immediate hurdles. A successful break above 1.3850 might clear the path for more gains above the 1.3880 and 1.3900 levels.

EUR/GBP Technical Analysis

The Euro remained steady above the 0.8640 level against the British Pound. The EUR/GBP pair climbed higher above the 0.8700 level, but it struggled to continue higher.

It traded as high as 0.8718 before the bears took a stand. As a result, there was a bearish reaction below the 0.8700 and 0.8680 support levels. There was also a break below a major contracting triangle with support near 0.8685 on the hourly chart.

EUR/GBP Technical Analysis Euro Pound

The pair settled below the 0.8680 level and the 50 hourly simple moving average. A low is formed near 0.8642 and the pair is now consolidating losses.

An initial resistance on the upside is near the 0.8660 level. It is near the 23.6% Fib retracement level of the recent decline from the 0.8718 swing high to 0.8642 low. The next major resistance on the upside is near the 0.8680 level.

The 50% Fib retracement level of the recent decline from the 0.8718 swing high to 0.8642 low is near the 0.8680 level. Moreover, the 50 hourly simple moving average is also near 0.8680.

If there is an upside break above 0.8680, the pair could start a fresh increase above 0.8700. In the stated case, there are chances of a move towards the 0.8750 level.

On the downside, the 0.8640 level is a key support. A proper close below the 0.8640 level may possibly put a lot of pressure on EUR/GBP and it could even decline towards 0.8600.

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.

Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.

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.

Stay ahead of the market!

Subscribe now to our mailing list and receive the latest market news and insights delivered directly to your inbox.

Latest articles

BTC/USD Analysis: Price Approaching Key Resistance
Cryptocurrencies

BTC/USD Analysis: Price Approaching Key Resistance

Analysing the long-term BTC/USD chart on 16th May, we created a "roadmap" for Bitcoin's price, which looked like an expanding fan and consisted of a median line with support levels below it and resistance levels above it.

Today, when

MSFT Share Price Dropped After Global Outage
Shares

How Did MSFT Stock Price React To Global Outage?

On 19th July, a global outage occurred. Numerous computers running Windows worldwide experienced "blue screens of death" (BSOD), affecting companies in different sectors, including airlines, hospitals, media, banks, and others.

The outage was caused by a CrowdStrike's Falcon Sensor update,

Market Analysis: GBP/USD Trims Gains While USD/CAD Rallies
Forex Analysis

Market Analysis: GBP/USD Trims Gains While USD/CAD Rallies

GBP/USD started a pullback from the 1.3050 zone. USD/CAD is rising and might aim for more gains above the 1.3735 resistance.

Important Takeaways for GBP/USD and USD/CAD Analysis Today

  • The British Pound started a
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.