GBP/USD Correcting Gains, EUR/GBP is Facing Key Resistance

FXOpen

GBP/USD is facing resistance near 1.4000 and it is correcting gains. EUR/GBP is consolidating above 0.8550 and it could start a decent increase if it clears 0.8600.

Important Takeaways for GBP/USD and EUR/GBP

  • The British Pound is struggling to settle above the 1.4000 resistance zone.
  • There was a break below a key bullish trend line with support at 1.3925 on the hourly chart of GBP/USD.
  • EUR/GBP is forming a strong support base above 0.8550 level.
  • There was a break above a connecting bearish trend line at 0.8575 on the hourly chart.

GBP/USD Technical Analysis

After a sharp rally, the British Pound failed to stay above 1.4100 against the US Dollar. The GBP/USD pair declined and it even settled below the 1.4000 support zone.

It even dived towards the 1.3800 level and broke the 50 hourly simple moving average. Recently, there was a strong upward move above the 1.3900 level, but the pair struggled to clear the 1.4000 resistance zone.

GBP/USD Technical Analysis British Pound US Dollar

A high is formed near 1.4004 on FXOpen before the pair dipped again. There was a break below a key bullish trend line with support at 1.3925 on the hourly chart of GBP/USD.

It traded as low as 1.3862 before recovering higher. There was a break above the 50% Fib retracement level of the downward move from the 1.4004 high to 1.3862 low.

However, the pair is facing resistance near the 1.3950 level and the 50 hourly simple moving average. The 61.8% Fib retracement level of the downward move from the 1.4004 high to 1.3862 low is also acting as a resistance.

The main resistance is still near 1.4000, above which the pair could rally again. On the downside, the 1.3900 level is a decent support. The next major support sits near the 1.3850 level, below which the pair could slide towards the 1.3800 level. Any more losses might call for a test of the 1.3720 support zone.

EUR/GBP Technical Analysis

The Euro started a major decline from well above the 0.8650 level against the British Pound. The EUR/GBP pair broke the 0.8620 and 0.8600 support levels.

It tested the 0.8550 zone and it seems like the pair is now forming a strong support base near 0.8550. It recovered above the 0.8570 resistance and the 50 hourly simple moving average. The pair traded above the 23.6% Fib retracement level of the downward move from the 0.8651 high to 0.8548 low.

EUR/GBP Technical Analysis Euro Pound

There was also a break above a connecting bearish trend line at 0.8575 on the hourly chart. The pair spiked above 0.8590, but it seems like the previous support at 0.8600 is now acting as a strong resistance.

The 50% Fib retracement level of the downward move from the 0.8651 high to 0.8548 low is also near the 0.8600 level. The pair is now consolidating above the 0.8570 level and the 50 hourly simple moving average.

To start a strong increase, the pair must settle above the 0.8600 resistance. Any more gains could lead the pair towards the 0.8650 level.

On the downside, the 0.8570 level and the 50 hourly simple moving average are initial supports. The main support is now forming near the 0.8550 level, below which there is a risk of a drop towards the 0.8520 level.

Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Latest from Forex Analysis

Commodities and European currencies Test Key Supports EUR/USD Analysis: The Price Today Has Set Its Minimum Since the Beginning of March Market Analysis: GBP/USD Dives While USD/CAD Gains Bullish Pace The US Currency Corrects After Recent Growth USD/JPY Price Analysis: Consolidation ahead of US News

Latest articles

Indices

Although UK-100 Index Is Near All-time Highs, UK Economy Slips into Recession

Technically, a national economic recession is defined as two consecutive quarters of contraction, and yesterday's Office for National Statistics data confirmed that this has happened — UK GDP fell in the third and fourth quarters of 2023 by 0.1% and

Cryptocurrencies

DOGE Price Increases by 170% in Less Than 2 Months

On February 1, 2024, the DOGE/USD rate was = 0.0783. On the last Friday of March, it rose to 0.2150. The rising price means Dogecoin is now the eighth-largest cryptocurrency in the world by market capitalization, overtaking Cardano

Commodities

Market Analysis: Gold Price and Crude Oil Price Gain Bullish Momentum

Gold price started a steady increase above the $2,200 resistance level. Crude oil prices are gaining bullish momentum and might rise toward $85.00.

Important Takeaways for Gold and Oil Prices Analysis Today

· Gold price started a decent increase

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 65.68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.