GBP/USD Nosedives, EUR/GBP Could Climb Higher

FXOpen

GBP/USD started a fresh decline from well above the 1.2000 zone. EUR/GBP is rising and might climb further higher above the 0.8500 resistance.

Important Takeaways for GBP/USD and EUR/GBP

· The British Pound started a fresh decline from the 1.2200 zone against the US Dollar.

· There is a key bearish trend line forming with resistance near 1.1850 on the hourly chart of GBP/USD.

· EUR/GBP climbed higher above the 0.8420 and 0.8450 resistance levels.

· There is a major bullish trend line forming with support near 0.8480 on the hourly chart.

GBP/USD Technical Analysis

The British Pound struggled to clear the 1.2250 and 1.2200 resistance levels against the US Dollar. The GBP/USD pair started a decline and there was a move below the 1.2120 support zone.

There was a sharp decline below the 1.2000 support and the 50 hourly simple moving average. The bears were able to push the pair below the 1.1920 level. A low was formed near 1.1791 on FXOpen and the pair is now consolidating losses.

GBP/USD Hourly Chart

On the upside, an initial resistance is near the 1.1850 level. There is also a key bearish trend line forming with resistance near 1.1850 on the hourly chart of GBP/USD.

The trend line is near the 23.6% Fib retracement level of the downward move from the 1.2138 swing high to 1.1791 low. The next main resistance is near the 1.1910 zone and the 50 hourly simple moving average.

The key hurdle is near the 1.1950 and 1.1965 levels. It is near the 50% Fib retracement level of the downward move from the 1.2138 swing high to 1.1791 low. A clear upside break above the 1.1950 and 1.1965 resistance levels could open the doors for a steady increase in the near term. The next major resistance sits near the 1.2000 level.

On the downside, an initial support is near the 1.1800 level. The next major support is near the 1.1750 level. Any more losses could lead the pair towards the 1.1680 support zone or even 1.1620.

EUR/GBP Technical Analysis

The Euro formed a base above the 0.8400 level against the British Pound. The EUR/GBP pair started a fresh increase and was able to clear the 0.8450 resistance zone.

The pair even traded above the 0.8480 level and the 50 hourly simple moving average. It traded as high as 0.8511 and is currently correcting lower. There was a move below the 23.6% Fib retracement level of the upward move from the 0.8425 swing low to 0.8511 high.

EUR/GBP Hourly Chart

On the downside, an initial support is near the 0.8480 level. There is also a major bullish trend line forming with support near 0.8480 on the hourly chart.

The next major support is near 0.8365 or the 50 hourly simple moving average. It is near the 50% Fib retracement level of the upward move from the 0.8425 swing low to 0.8511 high. A downside break below the 0.8365 support might call for more downsides.

In the stated case, the pair could decline towards the 0.8320 support level in the near term. On the upside, an immediate resistance is near the 0.8500 level.

The next major resistance for the bulls is near the 0.8520 level. A clear move above the 0.8520 resistance might push the price higher towards the 0.8550 level.

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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