Market Analysis: GBP/USD Takes Hit While EUR/GBP Consolidates Gains
GBP/USD started a fresh decline from the 1.3425 resistance zone. EUR/GBP is rising and might climb above the 0.8435 resistance.
Important Takeaways for GBP/USD and EUR/GBP Analysis Today
· The British Pound is showing bearish signs below the 1.3250 support.
· There is a key bearish trend line forming with resistance near 1.3170 on the hourly chart of GBP/USD at FXOpen.
· EUR/GBP is gaining pace and trading above the 0.8400 zone.
· There was a break above a connecting bearish trend line with resistance at 0.8330 on the hourly chart at FXOpen.
GBP/USD Technical Analysis
On the hourly chart of GBP/USD at FXOpen, the pair failed to stay above the 1.3400 pivot level. As a result, the British Pound started a fresh decline below 1.3320 against the US Dollar.
There was a clear move below 1.3250 and the 50-hour simple moving average. The bears pushed the pair below 1.3150. Finally, there was a spike below the 1.3120 support zone. A low was formed near 1.3092 and the pair is now consolidating losses.
There was a minor move above the 1.3120 level. On the upside, the GBP/USD chart indicates that the pair is facing resistance near the 1.3170 level. There is also a key bearish trend line forming with resistance near 1.3170.
The trend line is close to the 23.6% Fib retracement level of the downward move from the 1.3423 swing high to the 1.3092 low. The next major resistance is near the 50-hour simple moving average at 1.3200.
A close above the 1.3200 resistance zone could open the doors for a move toward the 50% Fib retracement level of the downward move from the 1.3423 swing high to the 1.3092 low at 1.3250. Any more gains might send GBP/USD toward 1.3345.
On the downside, there is a key support forming near 1.3090. If there is a downside break below the 1.3090 support, the pair could accelerate lower. The next major support is near the 1.3040 zone, below which the pair could test 1.3000. Any more losses could lead the pair toward the 1.2840 support.
EUR/GBP Technical Analysis
On the hourly chart of EUR/GBP at FXOpen, the pair started a decent increase from the 0.8320 zone. The Euro traded above the 0.8365 resistance level to enter a positive zone against the British Pound.
The pair settled above the 50-hour simple moving average and 0.8380. The pair traded as high as 0.8434 before there was a downside correction. There was a move below the 23.6% Fib retracement level of the upward move from the 0.8321 swing low to the 0.8435 high.
However, the pair is stable above the 0.8400 support zone. The next major support is near the 50% Fib retracement level of the upward move from the 0.8321 swing low to the 0.8435 high at 0.8380.
A downside break below the 0.8380 support might call for more downsides. In the stated case, the pair could drop toward the 0.8365 support level. Any more losses might call for an extended drop toward the 0.8320 pivot zone.
The EUR/GBP chart suggests that the pair is facing resistance near the 0.8435 zone. A close above the 0.8435 level might accelerate gains. In the stated case, the bulls may perhaps aim for a test of 0.8480. Any more gains might send the pair toward the 0.8500 level.
Read more: https://fxopen.com/blog/en/aj-market-analysis-gbp-usd-takes-hit-while-eur-gbp-consolidates-gains/
Text source: Forex Trading Blog
