GBP/USD gained pace and there was a move above the 1.3500 resistance. EUR/GBP is attempting an upside break above the 0.8420 resistance zone.
Important Takeaways for GBP/USD and EUR/GBP
· The British Pound started a steady upward move above the 1.3450 and 1.3480 levels.
· There is a key rising channel forming with support near 1.3490 on the hourly chart of GBP/USD.
· EUR/GBP found support near 0.8365 and started a recovery wave.
· There was a break above a major bearish trend line with resistance near 0.8400 on the hourly chart.
GBP/USD Technical Analysis
The British Pound formed a support base above the 1.3400 zone against the US Dollar. The GBP/USD pair started a steady upward move after it broke the 1.3450 resistance zone.
The pair recovered above the 1.3500 resistance level and the 50 hourly simple moving average. A high was formed near 1.3550 and the pair is now correcting gains. There was a break below the 1.3540 and 1.3520 levels.
The pair traded below the 50% Fib retracement level of the upward move from the 1.3465 low to 1.3550 high. The pair is now trading near the 1.3500 level.
There is also a key rising channel forming with support near 1.3490 on the hourly chart of GBP/USD. The channel is near the 61.8% Fib retracement level of the upward move from the 1.3465 low to 1.3550 high.
On the upside, an initial resistance is near the 1.3520 level. If there is an upside break above the 1.3520 resistance, the price could surpass 1.3550. The next main resistance is near the 1.3600 zone.
If there is no upside break, the pair could start a fresh decline below 1.3500. An immediate support is near the 1.3480 level.
The first key support is near the 1.3450 level. Any more losses could lead the pair towards the 1.3400 support zone. The next major support sits near the 1.3320 level.
EUR/GBP Technical Analysis
The Euro started a strong decline after it failed to clear the 0.8465 resistance against the British Pound. The EUR/GBP pair traded below the 0.8420 support to move into a bearish zone.
There was a break below the 0.8400 level and the 50 hourly simple moving average. A low was formed near 0.8465 and the pair is now correcting losses. The pair surpassed the 0.8380 and 0.8385 resistance levels.
Besides, there was a break above a major bearish trend line with resistance near 0.8400 on the hourly chart. The pair is now facing resistance near the 0.8415 level.
It is near the 50% Fib retracement level of the downward move from the 0.8463 high to 0.8368 low. The next major resistance for the bulls is near the 0.8440 level.
The 76.4% Fib retracement level of the downward move from the 0.8463 high to 0.8368 low is also near the 0.8440 level. A clear move above the 0.8440 resistance might push the price higher. The next main resistance on the upside is near the 0.8500 level.
On the downside, an initial support is near the 0.8400 level. The next major support is near 0.8380 level. A downside break below the 0.8385 and 0.8380 support levels might call for more downsides. In the stated case, the pair could decline towards the 0.8350 support level in the near term.
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.