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

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.

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.

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.