Market Analysis: GBP/USD Climbs Back as EUR/GBP Faces Pressure
GBP/USD is attempting a recovery wave above the 1.2600 resistance. EUR/GBP declined steadily below the 0.8340 and 0.8330 support levels.
Important Takeaways for GBP/USD and EUR/GBP Analysis Today
· The British Pound is attempting a fresh increase above 1.2620.
· There is a key bullish trend line forming with support near 1.2680 on the hourly chart of GBP/USD at FXOpen.
· EUR/GBP is trading in a bearish zone below the 0.8330 pivot level.
· There is a connecting bearish trend line forming with resistance near 0.8305 on the hourly chart at FXOpen.
GBP/USD Technical Analysis
On the hourly chart of GBP/USD at FXOpen, the pair declined after it failed to clear the 1.3000 resistance. As mentioned in the previous analysis, the British Pound even traded below the 1.2800 support against the US Dollar.
Finally, the pair tested the 1.2500 zone and is currently attempting a fresh increase. The bulls were able to push the pair above the 50-hour simple moving average and 1.2600. The pair even climbed above the 1.2700 level.
A high was formed at 1.2749 and the pair is now consolidating gains. There was a move below the 23.6% Fib retracement level of the upward move from the 1.2506 swing low to the 1.2749 high.
On the upside, the GBP/USD chart indicates that the pair is facing resistance near 1.2720. The next major resistance is near 1.2750. A close above the 1.2750 resistance zone could open the doors for a move toward 1.2800. Any more gains might send GBP/USD toward 1.2880.
On the downside, there is a bullish trend line forming with support at 1.2680. If there is a downside break below 1.2680, the pair could accelerate lower. The first major support is near the 1.2630 level and the 50% Fib retracement level of the upward move from the 1.2506 swing low to the 1.2749 high.
The next key support is seen near 1.2600, below which the pair could test 1.2570. Any more losses could lead the pair toward the 1.2510 support.
EUR/GBP Technical Analysis
On the hourly chart of EUR/GBP at FXOpen, the pair started a fresh decline from well above 0.8350. The Euro traded below the 0.8320 and 0.8320 support levels against the British Pound.
The EUR/GBP chart suggests that the pair even declined below the 0.8300 level and tested 0.8290. It is now consolidating losses and trading below the 50-hour simple moving average. The pair is now facing resistance near the 23.6% Fib retracement level of the downward move from the 0.8364 swing high to the 0.8289 low.
There is also a connecting bearish trend line forming with resistance near 0.8305. The next major resistance could be 0.8330. It coincides with the 50% Fib retracement level of the downward move from the 0.8364 swing high to the 0.8289 low.
The main resistance is near the 0.8340 zone. A close above the 0.8340 level might accelerate gains. In the stated case, the bulls may perhaps aim for a test of 0.8365. Any more gains might send the pair toward the 0.8400 level.
Immediate support sits near 0.8290. The next major support is near 0.8265. A downside break below the 0.8265 support might call for more downsides. In the stated case, the pair could drop toward the 0.8240 support level.
Read more: https://fxopen.com/blog/en/aj-market-analysis-gbp-usd-climbs-back-as-eur-gbp-faces-pressure/
Text source: Forex Trading Blog
