GBP/USD started a steady decline from the 1.4000 resistance zone. EUR/GBP also declined and it broke the key 0.8500 support zone.
Important Takeaways for GBP/USD and EUR/GBP
- The British Pound failed to surpass the 1.4000 resistance zone and started a fresh decline.
- There is a major bearish trend line forming with resistance near 1.3915 on the hourly chart of GBP/USD.
- EUR/GBP started a fresh decline from well above the 0.8550 pivot level.
- There is a key bearish trend line forming with resistance near 0.8500 on the hourly chart.
GBP/USD Technical Analysis
The British Pound made many attempts to clear the 1.3400 resistance level against the US Dollar, but it failed. As a result, the GBP/USD pair started a steady decline below the 1.3950 level.
The pair even broke the 1.3920 support level and it settled below the 50 hourly simple moving average. Finally, there was a break below the 1.3900 support and the pair traded as low as 1.3855 on FXOpen.
It is now consolidating losses above the 1.3850 support. An immediate resistance on the upside is near the 1.3875 level. The 23.6% Fib retracement level of the downward move from the 1.3948 swing high to 1.3855 low is also near the 1.3875 level.
The first major resistance is now forming near the 1.3900 zone and 50 hourly simple moving average. It is close to the 50% Fib retracement level of the downward move from the 1.3948 swing high to 1.3855 low.
Moreover, there is a major bearish trend line forming with resistance near 1.3915 on the hourly chart of GBP/USD. Therefore, a proper break above the 1.3900 resistance and the trend line could open the doors for a steady increase.
An immediate support on the downside is near the 1.3850 level. A downside break below the 1.3850 level might call for more losses. The next major support is near the 1.3800 level. Any more losses could lead the pair towards the 1.3740 level in the near term.
EUR/GBP Technical Analysis
The Euro formed a key top near the 0.8557 level against the British Pound. The EUR/GBP pair started a fresh decline below the 0.8520 support zone and moved into a bearish zone.
The pair even broke the 0.8500 support level and it settled below the 50 hourly simple moving average. A low is formed near 0.8469 and it is now consolidating losses. An immediate resistance is near the 0.8485 level.
The first key resistance is near the 0.8500 level. There is also a key bearish trend line forming with resistance near 0.8500 on the hourly chart.
The trend line is close to the 23.6% Fib retracement level of the downward move from the 0.8557 high to 0.8469 low. The next major resistance is near the 0.8515 level, where the bulls might face a strong selling interest.
The 50% Fib retracement level of the downward move from the 0.8557 high to 0.8469 low is also close to 0.8515. An initial support on the downside is near the 0.8475 level.
The next major support is near 0.8565 level. A downside break below the 0.8565 and 0.8560 support levels might call for more downsides. In the stated case, the pair could decline towards the 0.8500 support level in the near term.
This forecast represents FXOpen Markets Limited opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Markets Limited products and services or as financial advice.
Be the first to comment