GBP/USD started a strong increase above the 1.2300 resistance zone and it could rise further. EUR/GBP is likely to dip further before it attempts a fresh upward move.
Important Takeaways for GBP/USD and EUR/GBP
- The British Pound gained traction and rallied above the 1.2350 level.
- There is a key bullish trend line forming with support near 1.2350 on the hourly chart of GBP/USD.
- EUR/GBP surged higher above 0.9000 before it faced sellers near the 0.9050 level.
- There was a break below a major bullish trend line with support near 0.8985 on the hourly chart.
GBP/USD Technical Analysis
In the past few days, there was a decent increase in the British Pound from the 1.2220 support against the US Dollar. As a result, the GBP/USD pair climbed higher and broke many hurdles near the 1.2300 zone.
The pair even settled above the 1.2350 level and the 50 hourly simple moving average. Finally, the pair spiked above the 1.2400 zone and a new intraday high is formed near the 1.2419 level on FXOpen.
It is currently correcting lower and trading near the 23.6% Fib retracement level of the recent rise from the 1.2291 low to 1.2419 high. On the downside, the first major support is near the 1.2360 and 1.2355 levels.
There is also a key bullish trend line forming with support near 1.2350 on the hourly chart of GBP/USD. The trend line is close to the 50% Fib retracement level of the recent rise from the 1.2291 low to 1.2419 high.
If the pair fails to stay above the 1.2350 support, there is a risk of more losses towards the 1.2300 support zone. Any further losses could lead the pair towards the 1.2260 level.
On the upside, an initial resistance zone is near the 1.2400 zone. A successful daily close above the 1.2400 zone could open the doors for a larger upward move towards the 1.2500 resistance in the near term.
EUR/GBP Technical Analysis
The Euro performed really well and it broke many hurdles near the 0.8950 zone against the British Pound. The EUR/GBP pair even surged above the 0.8980 resistance zone to enter a bullish zone.
There was a close above the 0.9000 level and the 50 hourly simple moving average. The pair traded as high as 0.9054 before the pair started a downside correction.
There was a break below the 23.6% Fib retracement level of the upward move from the 0.8881 low to 0.9054 high. Besides, there was a break below a major bullish trend line with support near 0.8985 on the hourly chart.
The pair spiked below the 0.8980 level and the 50 hourly simple moving average. However, the pair found support near the 0.8960 level. The 50% Fib retracement level of the upward move from the 0.8881 low to 0.9054 high also acted as a support.
On the downside, there is a key support forming near the 0.8960 level. Any further losses may perhaps lead the pair towards the 0.8925 support zone.
On the upside, the 0.9020 level is an initial hurdle for the bulls. If there is a break above the 0.9020 zone, there are chances of a push towards 0.9050. Any further gains might call for a test of 0.9100.