GBP/USD Rallies Further, EUR/GBP Takes A Hit
GBP/USD started a fresh increase above the 1.2150 resistance. EUR/GBP failed to stay above the 0.8600 support and declined towards 0.8550.
Important Takeaways for GBP/USD and EUR/GBP
· The British Pound started a fresh increase after it broke the 1.2050 resistance against the US Dollar.
· There was a break above a major bearish trend line with resistance near 1.2000 on the hourly chart of GBP/USD.
· EUR/GBP started a fresh decline after it failed to surpass the 0.8675 resistance zone.
· There was a break below a major contracting triangle with support near 0.8615 on the hourly chart.
GBP/USD Technical Analysis
The British Pound found support near the 1.1920 zone against the US Dollar. The GBP/USD pair started a fresh increase and was able to clear the 1.2000 resistance zone.
There was a also a break above a major bearish trend line with resistance near 1.2000 on the hourly chart of GBP/USD. The pair even surpassed the 1.2150 resistance zone and the 50 hourly simple moving average.
Recently, there was a minor downside correction from the 1.2300 zone. The pair dipped below the 1.2200 level. A low was formed near 1.2134 on FXOpen and the pair started a fresh increase.
There was a clear move above the 1.2250 resistance. The pair surpassed the 76.4% Fib retracement level of the downward move from the 1.2310 swing high to 1.2134 low. It is now trading above the 1.2310 swing high.
On the upside, an initial resistance is near the 1.2350 level. It is near the 1.236 Fib extension level of the downward move from the 1.2310 swing high to 1.2134 low.
The next main resistance is near the 1.2400 zone. A clear upside break above the 1.2400 and 1.2420 resistance levels could open the doors for a steady increase in the near term. The next major resistance sits near the 1.2500 level.
On the downside, an initial support is near the 1.2300 level, below which it could test the 1.2250 support. The next major support is near the 1.2230 level and the 50 hourly simple moving average. Any more losses could lead the pair towards the 1.2200 support zone.
EUR/GBP Technical Analysis
The Euro started a steady fresh decline from the 0.8680 resistance zone against the British Pound. The EUR/GBP pair declined below the 0.8650 and 0.8620 support levels to move into a bearish zone.
The pair even traded below the 0.8600 level and the 50 hourly simple moving average. Besides, there was a break below a major contracting triangle with support near 0.8615 on the hourly chart. The recent swing low was formed near 0.8555 and the pair is now consolidating losses.
On the upside, an immediate resistance is near the 0.8580 level. It is near 50% Fib retracement level of the downward move from the 0.8608 swing high to 0.8555 low.
The next major resistance for the bulls is near the 0.8590 level and the 50 hourly simple moving average, above which the pair might test the 76.4% Fib retracement level of the downward move from the 0.8608 swing high to 0.8555 low.
On the downside, an initial support is near the 0.8555 level. The next major support is near 0.8540. A downside break below the 0.8540 support might call for more downsides. In the stated case, the pair could decline towards the 0.8500 support level in the near term.
This forecast represents FXOpen Companies opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Companies products and services or as financial advice.