Trump Tariffs: GBP/USD and EUR/GBP Fall Into The Red
GBP/USD failed to climb above 1.2500 and trimmed all gains. EUR/GBP is declining and trading below the 0.8400 support level.
Important Takeaways for GBP/USD and EUR/GBP Analysis Today
· The British Pound is showing bearish signs below 1.2400.
· There is a short-term declining channel forming with resistance near 1.2280 on the hourly chart of GBP/USD at FXOpen.
· EUR/GBP is declining and showing bearish signs below 0.8400.
· There is a key bearish trend line forming with resistance at 0.8370 on the hourly chart at FXOpen.
GBP/USD Technical Analysis
On the hourly chart of GBP/USD at FXOpen, the pair started a fresh decline from the 1.2470 zone. As mentioned in the previous analysis, the British Pound struggled to extend gains and declined below the 1.2360 support level against the US Dollar.
There was a clear move below the 1.2320 level. The pair even settled below the 1.2300 level and the 50-hour simple moving average. The pair tested the 1.2250 support zone.
A low was formed at 1.2249 and the pair is now consolidating losses. On the upside, the GBP/USD chart indicates that the pair is facing resistance near 1.2280 and a short-term declining channel. The next major resistance is near the 1.2320.
A close above the 1.2320 resistance zone could open the doors for a move toward the 50% Fib retracement level of the downward move from the 1.2471 swing high to the 1.2249 low at 1.2360.
Any more gains might send it toward the 61.8% Fib retracement level of the downward move from the 1.2471 swing high to the 1.2249 low at 1.2385. If not, the pair could resume its decline below 1.2250. On the downside, there is a key support forming near 1.2220.
If there is a downside break below the 1.2220 support, the pair could accelerate lower. The next major support is near the 1.2150 zone, below which the pair could test 1.2050. Any more losses could lead the pair toward the 1.2000 support.
EUR/GBP Technical Analysis
On the hourly chart of EUR/GBP at FXOpen, the pair struggled to gain pace for a move above 0.8420. The Euro settled below 0.8400 and started a fresh decline against the British Pound.
There was a clear move below the 0.8350 pivot level. The EUR/GBP chart suggests that the pair settled below the 50-hour simple moving average and 0.8340. A low is formed near 0.8307 and the pair is now consolidating losses.
Immediate resistance is near the 50% Fib retracement level of the downward move from the 0.8389 swing high to the 0.8307 low at 0.8350.
The next major resistance could be near the 50-hour simple moving average and the 61.8% Fib retracement level of the downward move from the 0.8389 swing high to the 0.8307 low at 0.8370. There is also a key bearish trend line forming with resistance at 0.8370.
A close above the 0.8370 level might accelerate gains. In the stated case, the bulls may perhaps aim for a test of 0.8420. Any more gains might send the pair toward the 0.8450 level.
Immediate support sits near 0.8325. The next major support is near 0.8305. A downside break below the 0.8305 support might call for more downsides. In the stated case, the pair could drop toward the 0.8265 support level.
Read more: https://fxopen.com/blog/en/aj-market-analysis-gbp-usd-and-eur-gbp-fall-into-the-red/
Text source: Forex Trading Blog
