GBP/USD Regains Strength While EUR/GBP Faces Many Hurdles

FXOpen

GBP/USD started a fresh increase above the 1.2000 resistance zone. EUR/GBP is struggling and facing resistance near the 0.8780 level.

Important Takeaways for GBP/USD and EUR/GBP

· The British Pound started a fresh increase above the 1.2000 barrier against the US Dollar.

· There was a break above a key bearish trend line with resistance near 1.2120 on the hourly chart of GBP/USD.

· EUR/GBP found support near 0.8715 and is currently recovering higher.

· There is a major bearish trend line forming with resistance near 0.8780 on the hourly chart.

GBP/USD Technical Analysis

The British Pound steady increase after it settled above the 1.2000 resistance zone against the US Dollar. The GBP/USD pair gained pace for a move above the 1.2080 resistance zone.

During the increase, there was a break above a key bearish trend line with resistance near 1.2120 on the hourly chart of GBP/USD. The pair even broke the 1.2150 resistance zone and settled above the 50 hourly simple moving average.

GBP/USD Hourly Chart

A high is formed near 1.2205 and the pair is now consolidating gains. On the downside, an initial support is near the 1.2160 level. It is near the 23.6% Fib retracement level of the upward move from the 1.2027 swing low to 1.2205 high.

The next major support is near the 1.2120 level and the 50 hourly simple moving average. It is near the 50% Fib retracement level of the upward move from the 1.2027 swing low to 1.2205 high.

Any more losses could lead the pair towards the 1.2050 support zone. On the upside, an initial resistance is near the 1.2200 level. The first major resistance is near the 1.2220 level. A clear move above the 1.2220 level could spark a decent increase.

The next major resistance sits near the 1.2320 level. Any more gains might send the pair towards the 1.2400 resistance zone.

EUR/GBP Technical Analysis

The Euro started a steady decline from well above the 0.8850 zone against the British Pound. The EUR/GBP pair declined below the 0.8820 and 0.8800 support levels.

The pair even spiked below the 0.8750 level before the bulls appeared. The pair recovered above 0.8740 and the recent swing low was formed near 0.8745. The pair is now attempting a recovery wave above the 0.8750 level.

EUR/GBP Hourly Chart

There was a move above the 23.6% Fib retracement level of the downward move from the 0.8819 swing high to 0.8745 low. On the upside, an immediate resistance is near the 0.8765 level and the 50 hourly simple moving average.

The next major resistance for the bulls is near the 0.8780 level or the 50% Fib retracement level of the downward move from the 0.8819 swing high to 0.8745 low.

There is also a major bearish trend line forming with resistance near 0.8780 on the hourly chart, above which the pair might test the 0.8815 resistance.

Any more gains might send the pair towards the 0.8850 level. On the downside, an initial support is near the 0.8750 level. The next major support is near 0.8715. A downside break below the 0.8715 support might call for more downsides. In the stated case, the pair could decline towards the 0.8650 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.

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 trading forex 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.

Latest from Forex Analysis

EUR/USD, GBP/USD, USD/JPY Analysis: Dollar Stable Despite Weak Employment Data Will rate hikes end when 2023 ends? USD/JPY, USD/CAD, and EUR/USD Analysis: The US Dollar Corrected in Anticipation of PMI Data Release EUR/USD, GBP/USD, USD/JPY Analysis: US Dollar Weakens after Fed Chairman's Comments EUR/USD, GBP/USD, and USD/JPY Analysis: US Dollar Growing Against Euro and Pound

Latest articles

Forex Analysis

EUR/USD, GBP/USD, USD/JPY Analysis: Dollar Stable Despite Weak Employment Data

Yesterday, statistics from the United States on the dynamics of open vacancies from JOLTS were published. In October, their number decreased by 617.0k to 8.733 million, which turned out to be the lowest result since the beginning of

Forex Analysis

Will rate hikes end when 2023 ends?

Finally, after a seemingly endless period of interest rate increases by the US Federal Reserve over the past few years, there is some degree of inkling that the rate rises may come to an end at the end of this

Commodities

Market Analysis: WTI Oil Price Drops to Lowest Level Since July

As the chart shows, the price of a barrel of US crude oil dropped below 72.10 per barrel yesterday for the first time since July 2023. Fundamentally, this happened against the backdrop of: → Statistics showing that US oil exports

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.