GBP/USD started a fresh decline from well above the 1.2650 level. EUR/GBP is rising and might attempt an upside break above the 0.8600 resistance zone.
Important Takeaways for GBP/USD and EUR/GBP
· The British Pound started a fresh decline from well above 1.2650 against the US Dollar.
· There is a key bearish trend line forming with resistance near 1.2335 on the hourly chart of GBP/USD.
· EUR/GBP formed a base above 0.8350 and started a fresh increase.
· There is a major bullish trend line forming with support near 0.8535 on the hourly chart.
GBP/USD Technical Analysis
The British Pound struggled to settle above the 1.2620 resistance zone against the US Dollar. The GBP/USD pair started a fresh decline below the 1.2550 support zone.
There was a clear move below the 1.2500 level and the 50 hourly simple moving average. The bears pushed the pair below the 1.2400 level and a new multi-week low was formed near 1.2278 on FXOpen.
The pair is now consolidating losses above the 1.2280 level. On the upside, an initial resistance is near the 1.2335 level. There is also a key bearish trend line forming with resistance near 1.2335 on the hourly chart of GBP/USD.
The next main resistance is near the 1.2400 zone and the 50 hourly simple moving average. It is close to the 23.6% Fib retracement level of the key decline from the 1.2637 swing high to 1.2278 low.
The main resistance is now forming near the 1.2450 level. It is close to the 50% Fib retracement level of the key decline from the 1.2637 swing high to 1.2278 low. A clear upside break above the 1.2450 and 1.2460 resistance levels could open the doors for a steady increase in the near term.
If not, the pair might continue to move down below 1.2280. The next major support is near the 1.2220 level. Any more losses could lead the pair towards the 1.2150 support zone or even 1.2120.
EUR/GBP Technical Analysis
The Euro formed a base above the 0.8350 level against the British Pound. The EUR/GBP pair started a fresh increase after it broke the 0.8400 resistance zone.
The pair was able to clear the 0.8500 resistance and the 50 hourly simple moving average. It even climbed above the 0.8550 level and traded close to 0.8600. It is now correcting gains and trading below 0.8560.
There was a test of the 23.6% Fib retracement level of the upward move from the 0.8366 swing low to 0.8591 high. On the downside, an initial support is near the 0.8540 level.
The next major support is near 0.8535 level. There is also a major bullish trend line forming with support near 0.8535 on the hourly chart. A downside break below the 0.8540 and 0.8535 support levels might call for more downsides.
In the stated case, the pair could decline towards the 0.8480 support level in the near term. On the upside, the pair is facing resistance near the 0.8580 level.
The next major resistance for the bulls is near the 0.8600 level. A clear move above the 0.8600 resistance might push the price higher. The next main resistance on the upside is near the 0.8650 level, above which the pair could even climb towards 0.8720.
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.