GBP/USD rallied above the 1.4200 level before correcting lower. EUR/GBP is declining, but it is might find bids near the 0.8635 zone in the near term.
Important Takeaways for GBP/USD and EUR/GBP
- The British Pound surged above the 1.4200 level and recently corrected lower.
- There was a break below a major bullish trend line with support at 1.4140 on the hourly chart of GBP/USD.
- EUR/GBP climbed above the 0.8700 level before it faced sellers and corrected lower.
- There was a break below a key bullish trend line with support near 0.8660 on the hourly chart.
GBP/USD Technical Analysis
After a successful close above the 1.4000 level, the British Pound started a strong increase against the US Dollar. The GBP/USD pair a few key hurdles near 1.4080 and 1.4100 to move further into a positive zone.
The pair climbed above the 1.4200 level and traded close to 1.4240 on FXOpen. Recently, there was a downside correction, and the pair declined below the 1.4100 support zone and the 50 hourly simple moving average.
There was also a break below a major bullish trend line with support at 1.4140 on the hourly chart of GBP/USD. The pair even broke the 1.4000 support and traded as low as 1.3887. It is currently consolidating and trading above the 1.3950 level.
There was a break above the 23.6% Fib retracement level of the downward move from the 1.4181 high to 1.3887 low. The first major resistance on the upside is near the 1.4040 level and the 50 hourly simple moving average.
The 50% Fib retracement level of the downward move from the 1.4181 high to 1.3887 low is also near the 1.4040 level. A successful break above the 1.4040 level and the 50 hourly SMA could open the doors for a fresh increase. In the stated case, the pair could revisit the 1.4150 level.
On the downside, the 1.3950 level is a decent support. The next major support sits near the 1.3900 level, below which the pair could slide towards the 1.3820 level.
EUR/GBP Technical Analysis
The Euro started a strong increase above the 0.8650 and 0.8700 resistance levels against the British Pound. The EUR/GBP pair even climbed above the 0.8720 level, but it failed to extend gains.
A high was formed near 0.8730 and the pair started a fresh decline. There was a break below the 0.8700 support level and the 50 hourly simple moving average. The pair traded below the 23.6% Fib retracement level of the upward move from the 0.8541 low to 0.8730 high.
There was also a break below a key bullish trend line with support near 0.8660 on the hourly chart. The pair is now testing the 0.8635 support zone.
The 50% Fib retracement level of the upward move from the 0.8541 low to 0.8730 high seems to be acting as a support near the 0.8735 level. Any more losses may possibly open the doors for a move towards the 0.8600 support zone in the coming sessions.
On the upside, the previous support near 0.8665 or the 50 hourly simple moving average is likely to act as a resistance in the short-term. The first major resistance is near the 0.8780. A close above the 0.8780 zone might start a steady increase in EUR/GBP towards the 0.8730 level.
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