GBP/USD Struggle Continues, GBP/JPY Eyes More Gains

GBP/USD started another decline from well above the 1.2900 level. GBP/JPY is rising and might gain pace above the 164.20 resistance zone.

Important Takeaways for GBP/USD and GBP/JPY

· The British Pound started a fresh decline after it failed near 1.2950 against the US Dollar.

· Recently, there was a break above a key bearish trend line with resistance near 1.2500 on the hourly chart of GBP/USD.

· GBP/JPY started a fresh increase after it formed a base above the 159.50 level.

· There is a major bullish trend line forming with support near 163.25 on the hourly chart.

GBP/USD Technical Analysis

This past week, the British Pound started a major decline from the 1.3090 zone against the US Dollar. The GBP/USD pair broke the 1.3000 support zone to enter a bearish zone.

There was a clear move below the 1.2900 support and the 50 hourly simple moving average. It even traded below the 1.2750 and 1.2620 support levels. Finally, there was a move below the 1.2450 level and the pair traded as low as 1.2411 on FXOpen.

It is currently attempting an upside correction above 1.2500. There was a move above the 23.6% Fib retracement level of the key decline from the 1.3090 swing high to 1.2411 low.

There was also a break above a key bearish trend line with resistance near 1.2500 on the hourly chart of GBP/USD. However, the pair is facing a major resistance near the 1.3600 and 1.3620 levels. The next major hurdle is near the 1.2750 level.

The 50% Fib retracement level of the key decline from the 1.3090 swing high to 1.2411 low is also near the 1.2750 level. If there is no upside break above 1.2620, the pair could start a fresh decline.

An immediate support is near the 1.2525 level and the 50 hourly simple moving average. The next major support is near the 1.2500 level. If there is a break below the 1.2500 support, the pair could test the 1.2420 support.

GBP/JPY Technical Analysis

The British Pound also started a fresh increase from the 159.50 support zone against the Japanese Yen. The GBP/JPY pair gained pace above the 160.00 level to enter a positive zone.

There was a clear move above the 161.50 level and the 50 hourly simple moving average. The pair traded as high as 164.23 and is currently consolidating gains.

An initial support on the downside is near the 163.15 level. It is near the 23.6% Fib retracement level of the upward move from the 159.48 swing low to 164.23 high. There is also a major bullish trend line forming with support near 163.25 on the hourly chart.

The next major support is near the 161.85 level. The 50% Fib retracement level of the upward move from the 159.48 swing low to 164.23 high is also near 161.85.

If there is a downside break below the 161.85 support, the pair could decline towards the 160.00 support zone. Any more losses might send the pair towards the 159.50 level in the near term.

On the upside, GBP/JPY is facing resistance near the 164.20 level. The next key resistance could be 165.00. A clear break above the 165.00 resistance could push the pair towards the 167.50 resistance.

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.