GBP/USD remained in a significant downtrend and declined below the 1.2100 support. EUR/GBP is trading with a bullish bias with a strong support near 0.9250.
Important Takeaways for GBP/USD and EUR/GBP
- The British Pound declined heavily below the 1.2200 and 1.2100 support levels.
- There is a connecting bearish trend line forming with resistance near 1.2130 on the hourly chart of GBP/USD.
- EUR/GBP climbed higher above the 0.9120 and 0.9200 resistance levels.
- There is a major bullish trend line forming with support near 0.9240 on the hourly chart.
GBP/USD Technical Analysis
The British Pound faced a solid rise in selling pressure after it failed to climb above the 1.2320 resistance against the US Dollar. As a result, the GBP/USD pair started a strong decline and broke the key 1.2200 support area.
The recent decline was such that the pair even broke the 1.2100 support level and the 50 hourly simple moving average. Finally, the pair traded below 1.2050 on FXOpen and formed a new multi-month low near 1.2015.
The pair is currently consolidating losses, with an immediate resistance near the 1.2050 level. Moreover, the 23.6% Fib retracement level of the last drop from the 1.2182 high to 1.2014 low is also near the 1.2054 level to stop the recent recovery.
The main resistance on the upside is near the 1.2075, 1.2080 and 1.2100 levels. Moreover, the 50% Fib retracement level of the last drop from the 1.2182 high to 1.2014 low is near the 1.2098 level.
More importantly, there is a connecting bearish trend line forming with resistance near 1.2130 on the hourly chart of GBP/USD. Therefore, upsides are likely to face a lot of hurdles near the 1.2075, 1.2080 and 1.2100 resistance levels.
On the downside, an initial support is near the 1.2020 level. If there is a downside break below the 1.2000 handle, the pair might decline heavily towards the 1.1920 level in the near term.
EUR/GBP Technical Analysis
The Euro remained well bid above the 0.9100 support area against the British Pound. The EUR/GBP pair started a decent upward move and climbed above the 0.9120 and 0.9200 resistance levels.
It opened the doors for more gains and the pair broke the key 0.9250 resistance plus settled well above the 50 hourly simple moving average. Finally, the pair traded above the 0.9300 level and formed a new multi-month high at 0.9324.
At the moment, the pair is correcting gains below 0.9310. An immediate support is near the 0.9300 level plus the 23.6% Fib retracement level of the recent wave from the 0.9214 low to 0.9324 high.
On the downside, there are many important supports, starting with 0.9280. The next key support is near the 0.9270 level plus the 50% Fib retracement level of the recent wave from the 0.9214 low to 0.9324 high.
The main support is near the 0.9250 level and the 50 hourly simple moving average. Moreover, there is a major bullish trend line forming with support near 0.9240 on the hourly chart of EUR/GBP.
Therefore, a downside correction towards the 0.9275 or 0.9250 support is likely to find a strong buying interest in the near term. Only a close below 0.9240 and the 50 hourly simple moving average might start a major decline.
On the upside, an initial resistance is near the 0.9325 level, above which EUR/GBP could rise towards the 0.9360 and 0.9370 levels in the near term.
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