GBP/USD Surges Above 1.2800, EUR/GBP Facing Major Hurdle

Aayush Jindal -

GBP/USD started a strong increase above the 1.2600 resistance and climbed above 1.2800. EUR/GBP is trading in a positive zone, but it is facing a major hurdle near 0.9130.

Important Takeaways for GBP/USD and EUR/GBP

  • The British Pound gained bullish momentum above the 1.2600 and 1.2700 levels.
  • There is a connecting bullish trend line forming with support near 1.2780 on the hourly chart of GBP/USD.
  • EUR/GBP remained well bid above the 0.9050 and 0.9060 support levels.
  • There is a short-term rising channel forming with support near 0.9110 on the hourly chart.

GBP/USD Technical Analysis

In the past few days, the British Pound started a steady increase above the 1.2600 resistance level against the US Dollar. The GBP/USD pair broke many hurdles near 1.2720 to move further into a positive zone.

It even surpassed the 1.2800 resistance and settled well above the 50 hourly simple moving average. It traded as high as 1.2858 on FXOpen and it is currently consolidating gains.

An initial support is near the 1.2825 level. It is close to the 23.6% Fib retracement level of the recent wave from the 1.2717 low to 1.2858 high. The first major support is forming near the 1.2800 level.

There is also a connecting bullish trend line forming with support near 1.2780 on the hourly chart of GBP/USD. The trend line is close to the 50% Fib retracement level of the recent wave from the 1.2717 low to 1.2858 high.

Below the trend line, the next support is near the 1.2750 level or the 50 hourly simple moving average. A downside break below the trend line support and 1.2750 might start a strong decline in the coming sessions.

Conversely, the pair is likely to continue higher above the 1.2850 resistance. The next major resistance on the upside is near the 1.2880 level, above which the pair could even test the 1.2920 level.

EUR/GBP Technical Analysis

The Euro remained well bid above the 0.9000 level and climbed higher against the British Pound. The EUR/GBP pair broke the key 0.9050 resistance to move into a positive zone.

Besides, there was a break above the 0.9080 resistance and the 50 hourly simple moving average. However, the pair seems to be facing a major hurdle near the 0.9125 and 0.9135 levels.

The recent high was formed near 0.9124 before the pair corrected lower. It broke the 23.6% Fib retracement level of the recent upward move from the 0.9083 low to 0.9124 high.

It seems like there is a short-term rising channel forming with support near 0.9110 on the hourly chart. The channel support is close to the 50% Fib retracement level of the recent upward move from the 0.9083 low to 0.9124 high.

If the pair fails to break the 0.9125 resistance level, it might decline below the channel support. The next major support could be 0.9080, below which the pair could revisit the 0.9060 support level in the near term.

Conversely, the EUR/GBP pair could break the main 0.9125 and 0.9135 resistance levels. If the bulls succeed, the pair is likely to accelerate higher above the 0.9150 resistance. The next major resistance is seen near the 0.9180 and 0.9185 levels, where the bears might emerge.