GBP/USD is currently correcting higher after a sharp decline towards the 1.2820 support area. EUR/GBP is currently holding supports and it could rise towards 0.8600 in the near term.
Important Takeaways for GBP/USD and EUR/GBP
- The British Pound is facing a lot of resistance on the upside near the 1.2880 level.
- There was a break below a major bullish trend line with support near 1.2920 on the hourly chart of GBP/USD.
- EUR/GBP is currently holding the main 0.8555 support area and it could rise steadily.
- There are two connecting bullish trend lines forming with support near 0.8575 and 0.8570 on the hourly chart.
GBP/USD Technical Analysis
The British Pound made a couple of attempts to clear the 1.2970 resistance area against the US Dollar. The GBP/USD pair failed to continue higher and started a fresh decline below the 1.2950 support.
The pair declined steadily below the 1.2920 support area and the 50 hourly simple moving average. Moreover, there was a break below a major bullish trend line with support near 1.2920 on the hourly chart of GBP/USD.
It opened the doors for more losses below the 1.2880 level. Finally, the pair traded as low as 1.2823 on FXOpen. It is currently correcting higher and is trading above the 1.2840 level.
Besides, there was a break above the 23.6% Fib retracement level of the recent drop from the 1.2928 high to 1.2823 low. However, there are many resistances on the upside near the 1.2860 and 1.2870 levels.
More importantly, the 50% Fib retracement level of the recent drop from the 1.2928 high to 1.2823 low is near the 1.2875 level to act as a resistance.
Therefore, the pair must move above the 1.2875 and 1.2880 resistance levels to start a solid upward move. The next key resistances are near the 1.2920 and 1.2950 levels.
On the other hand, the pair might continue to move down below 1.2840. An immediate support is near the 1.2825 level, below which GBP/USD is likely to test the main 1.2800 support area.
EUR/GBP Technical Analysis
The Euro started a decent upward move from the 0.8520 support area against the British Pound. The EUR/GBP pair broke a few key resistances near the 0.8550 level to move into a positive zone.
Moreover, there was a close above the 0.8560 level and the 50 hourly simple moving average. The increase was such that the pair tested the 0.8600 resistance.
A high was formed near 0.8604 and the pair recently started a downside correction. It tested the 0.8570 support and it is trading nicely above the 50 hourly simple moving average.
An immediate resistance is near the 0.8580 level. The first key resistance is near the 0.8585 level since it is near the 50% Fib retracement level of the recent drop from the 0.8604 high to 0.8568 low.
If there is a decent upward move above 0.8580, the pair is likely to retest the 0.8600 resistance. An intermediate resistance is near the 76.4% Fib retracement level of the recent drop from the 0.8604 high to 0.8568 low.
Conversely, there are many supports near the 0.8570 and 0.8560 levels. Besides, there are two connecting bullish trend lines forming with support near 0.8575 and 0.8570 on the hourly chart, below which EUR/GBP could decline towards 0.8555.