GBP/USD started a fresh decline from the 1.2860 resistance zone. EUR/GBP is rising and might climb above the 0.8620 resistance.
Important Takeaways for GBP/USD and EUR/GBP Analysis Today
- The British Pound is showing bearish signs below the 1.2800 support.
- There is a key bearish trend line forming with resistance near 1.2750 on the hourly chart of GBP/USD at FXOpen.
- EUR/GBP is gaining pace and trading above the 0.8500 zone.
- There is a short-term contracting triangle forming with support near 0.8570 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 1.2860 pivot level. As a result, the British Pound started a fresh decline below 1.2820 against the US Dollar.
There was a clear move below 1.2800 and the 50-hour simple moving average. The bears pushed the pair below 1.2750. Finally, there was a spike below the 1.2680 support zone. A low was formed near 1.2673 and the pair is now consolidating losses.
There was a minor move above toward the 23.6% Fib retracement level of the downward move from the 1.2802 swing high to the 1.2673 low.
On the upside, the GBP/USD chart indicates that the pair is facing resistance near the 50-hour simple moving average at 1.2735 and the 50% Fib retracement level of the downward move from the 1.2802 swing high to the 1.2673 low.
The next major resistance is near a bearish trend line at 1.2750 on the same chart. 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 1.2840.
On the downside, there is a key support forming near 1.2680. If there is a downside break below the 1.2680 support, the pair could accelerate lower. The next major support is near the 1.2620 zone, below which the pair could test 1.2585. Any more losses could lead the pair toward the 1.2540 support.
EUR/GBP Technical Analysis
On the hourly chart of EUR/GBP at FXOpen, the pair started a decent increase from the 0.8415 zone. The Euro traded above the 0.8465 resistance level to enter a positive zone against the British Pound.
The pair settled above the 50-hour simple moving average and 0.8515. The pair traded as high as 0.8618 before there was a downside correction. There was a move below the 23.6% Fib retracement level of the upward move from the 0.8416 swing low to the 0.8618 high.
However, the pair is stable above 0.8550. There is also a short-term contracting triangle forming with support near 0.8570.
The next major support is near the 50% Fib retracement level of the upward move from the 0.8416 swing low to the 0.8618 high at 0.8515. A downside break below the 0.8515 support might call for more downsides. In the stated case, the pair could drop toward the 0.8465 support level. Any more losses might call for an extended drop toward the 0.8415 pivot zone.
The EUR/GBP chart suggests that the pair is facing resistance near the 0.8620 zone. A close above the 0.8620 level might accelerate gains. In the stated case, the bulls may perhaps aim for a test of 0.8650. Any more gains might send the pair toward the 0.8685 level.
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