GBP/USD started a fresh increase after a drop to 1.3800. Conversely, GBP/JPY is declining and it broke the key 152.00 support zone.
Important Takeaways for GBP/USD and GBP/JPY
- The British Pound traded as low as 1.3790 before it started an upside correction against the US Dollar.
- There was a break above a key bearish trend line with resistance near 1.3855 on the hourly chart of GBP/USD.
- GBP/JPY topped near 153.30 and started a major decline.
- There was a break below a major bullish trend line with support near 153.00 on the hourly chart.
GBP/USD Technical Analysis
This past week, there was a steady decline in the British Pound below the 1.3900 level against the US Dollar. The GBP/USD pair even broke the 1.3850 and 1.3820 support levels.
It traded as low as 1.3790 on FXOpen before it started an upside correction. There was a decent recovery wave above the 1.3800 level. The price surpassed the 1.3850 resistance level and the 50 hourly simple moving average.
There was also a break above a key bearish trend line with resistance near 1.3855 on the hourly chart of GBP/USD. The pair is now trading nicely above the 1.3850 level.
It traded as high as 1.3874 and it is now consolidating gains. An immediate support is near the 1.3855 level. It is close to the 23.6% Fib retracement level of the recent increase from the 1.3790 low to 1.3874 high.
The next major support is near the 1.3840 level and the 50 hourly simple moving average. The 50% Fib retracement level of the recent increase from the 1.3790 low to 1.3874 high is also near 1.3832. If there is a break below the 1.3830 support, the pair could test the 1.3800 support. If there are additional losses, the pair could decline towards the 1.3660 level.
On the upside, the pair is facing a major resistance near the 1.3880 and 1.3900 levels. A clear break above the 1.3900 resistance could set the pace for a larger increase. The next key resistance is near 1.4000.
GBP/JPY Technical Analysis
The British Pound failed to surpass 153.30 and it started a major decline against the Japanese Yen. The GBP/JPY pair broke the 152.65 and 152.50 support levels to move into a bearish zone.
The pair even broke the 152.00 support and the 50 hourly simple moving average. It traded as low as 151.58 and it is now struggling to recover. An initial resistance on the upside is near the 152.00 zone.
The 23.6% Fib retracement level of the recent downward move from the 153.29 high to 151.58 low is also near the 152.00 level. A clear break above the 152.00 barrier could open the doors for a steady increase.
The next key resistance could be 152.45 and the 50 hourly simple moving average. Any more gains could lead the pair towards the 153.30 resistance zone in the near term.
On the downside, an initial support is near the 151.50 level. If there is a downside break below 151.50, the pair could accelerate lower towards the 150.80 level. The next major support is near 150.00, below which the pair could test the 149.50 support zone.
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 global forex with the Innovative Broker of 2022*. Choose from 50+ forex markets 24/5. Open your FXOpen account now or learn more about making your money go further with FXOpen.
* FXOpen International, Innovative Broker of 2022, according to the IAFT
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.