GBP/USD and GBP/JPY: British Pound Could Decline Further

FXOpen

GBP/USD failed to clear the 1.2300 resistance and started a fresh decline. GBP/JPY is also sliding and it might continue to move down towards the 130.50 level.

Important Takeaways for GBP/USD and GBP/JPY

  • The British Pound declined recently and traded below the key 1.2200 support.
  • There is a major declining channel forming with resistance near 1.2200 on the hourly chart of GBP/USD.
  • GBP/JPY is following a bearish path and it is trading well below the 132.00 level.
  • There is a crucial declining channel forming with resistance near 131.30 on the hourly chart.

GBP/USD Technical Analysis

This past week, the British Pound recovered above 1.2200 and 1.2250 against the US Dollar. However, the GBP/USD pair failed to surpass the 1.2300 resistance zone.

A high was formed at 1.2295 on FXOpen before the pair started a fresh decline. There was a break below the 1.2250 support area and the 50 hourly simple moving average.

GBP/USD Technical Analysis British Pound US Dollar

Moreover, the pair broke the 50% Fib retracement level of the upward move from the 1.2076 low to 1.2295 high. Finally, it spiked below 1.2200 and tested the 1.2160 support zone.

It seems like there is a major declining channel forming with resistance near 1.2200 on the hourly chart of GBP/USD. The channel resistance at 1.2200 is also near the 50 hourly simple moving average.

Therefore, the pair must break the channel resistance at 1.2200 and then settle above the 50 hourly simple moving average to start a fresh increase. The next major resistance above 1.2200 is near the 1.2250 level.

Conversely, the pair might continue to move down. An initial support is near the 1.2160 area. It is close to the 61.8% Fib retracement level of the upward move from the 1.2076 low to 1.2295 high.

If the pair breaks the 1.2160 and 1.2150 support levels, it might continue to move down towards the 1.2100 support zone in the coming sessions.

GBP/JPY Technical Analysis

The British Pound is also following a similar pattern and trading below the 132.00 pivot level against the Japanese Yen. The GBP/JPY pair formed a short-term top near 132.50 before it declined below 132.00.

The recent decline was such that the pair settled below the 131.80 level and the 50 hourly simple moving average. Besides, there was a break below the 50% Fib retracement level of the upward move from the 129.30 low to 132.50 high.

GBP/JPY Technical Analysis British Pound Japanese Yen

Similar to GBP/USD, there is a crucial declining channel forming with resistance near 131.30 on the hourly chart of GBP/JPY. The channel resistance at 131.30 is also near the 50 hourly simple moving average.

Therefore, the pair must break the channel resistance at 131.30 and the 50 hourly simple moving average to avoid more losses. The next major resistance above 131.30 is near the 131.75 level. Any further gains could increase chances of a push above the 132.00 resistance.

If the pair fails to recover above the 131.30 resistance, there are chances of a sustained decline. An initial support is near the 130.80 level. The next key support is near the 130.50 level.

It is close to the 61.8% Fib retracement level of the upward move from the 129.30 low to 132.50 high. Any further losses may perhaps lead the pair towards the 130.00 support.

Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Latest from Forex Analysis

Commodities and European currencies Test Key Supports EUR/USD Analysis: The Price Today Has Set Its Minimum Since the Beginning of March Market Analysis: GBP/USD Dives While USD/CAD Gains Bullish Pace The US Currency Corrects After Recent Growth USD/JPY Price Analysis: Consolidation ahead of US News

Latest articles

Indices

Although UK-100 Index Is Near All-time Highs, UK Economy Slips into Recession

Technically, a national economic recession is defined as two consecutive quarters of contraction, and yesterday's Office for National Statistics data confirmed that this has happened — UK GDP fell in the third and fourth quarters of 2023 by 0.1% and

Cryptocurrencies

DOGE Price Increases by 170% in Less Than 2 Months

On February 1, 2024, the DOGE/USD rate was = 0.0783. On the last Friday of March, it rose to 0.2150. The rising price means Dogecoin is now the eighth-largest cryptocurrency in the world by market capitalization, overtaking Cardano

Commodities

Market Analysis: Gold Price and Crude Oil Price Gain Bullish Momentum

Gold price started a steady increase above the $2,200 resistance level. Crude oil prices are gaining bullish momentum and might rise toward $85.00.

Important Takeaways for Gold and Oil Prices Analysis Today

· Gold price started a decent increase

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 65.68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.