GBP/USD started a recovery wave above the 1.1950 resistance zone. GBP/JPY declined and remains at a risk of more losses below 163.00.
Important Takeaways for GBP/USD and GBP/JPY
· The British Pound started a recovery wave above the 1.1950 resistance against the US Dollar.
· There is a major bullish trend line forming with support near 1.1960 on the hourly chart of GBP/USD.
· GBP/JPY declined steadily after it failed to clear the 166.20 resistance zone.
· There was a break below a key bullish trend line with support near 165.60 on the hourly chart.
GBP/USD Technical Analysis
This past week, the British Pound found support near the 1.1750 zone against the US Dollar. The GBP/USD pair started a recovery wave and was able to settle above the 1.1850 zone.
There was a steady increase above the 1.1900 zone and the 50 hourly simple moving average. The pair even traded above the 1.2000 resistance zone. However, the bears were active near the 1.2050 and 1.2060 levels.
A high was formed near 1.2063 on FXOpen and the pair is now correcting lower. There was a move below the 1.2000 support zone. It even broke the 50% Fib retracement level of the upward move from the 1.1916 swing low to 1.2063 high.
An immediate support is near the 1.1975 and the 50 hourly simple moving average. The next major support is near the 1.1960 level. There is also a major bullish trend line forming with support near 1.1960 on the hourly chart of GBP/USD.
If there is a break below the 1.1960 support, the pair could test the 1.1920 support. Any more losses might send GBP/USD towards 1.1850. On the upside, the pair is facing resistance near the 1.2000 level and the 1.2020.
An upside break above 1.2020 could set the pace for a move towards the 1.2060 resistance zone. The next major resistance sits near the 1.2120 level.
GBP/JPY Technical Analysis
The British Pound started a fresh decline from the 166.20 zone against the Japanese Yen. The GBP/JPY pair gained pace below the 165.50 and 165.00 support levels.
There was a clear move below the 164.20 level and the 50 hourly simple moving average. The pair even declined below 164.00 support and traded as low as 163.00. It is now consolidating losses above the 163.00 pivot level.
On the upside, GBP/JPY is facing resistance near the 163.70 level. It is near the 23.6% Fib retracement level of the downward move from the 166.23 swing high to 163.00 low.
The next key resistance could be 164.60 and the 50 hourly simple moving average. It is near the 50% Fib retracement level of the downward move from the 166.23 swing high to 163.00 low. A clear break above the 164.60 resistance could push the pair towards the 166.00 resistance.
On the downside, an initial support is near the 163.00 level. The next major support is near the 162.50. If there is a downside break below the 162.50 support, the pair could decline towards the 161.50 support zone. Any more losses might send the pair towards the 160.50 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.
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