Last Updated on May 24, 2021
GBP/USD found support near 1.3825 and it is now showing positive signs. GBP/JPY is stable above 149.40 and it is now facing hurdles near 150.00.
Important Takeaways for GBP/USD and GBP/JPY
- The British Pound extended its increase above the 1.4200 region against the US Dollar.
- There is a major bullish trend line forming with support near 1.4135 on the hourly chart of GBP/USD.
- GBP/JPY is correcting gains from the 155.00 resistance zone.
- There is a key bearish trend line forming with resistance near 154.40 on the hourly chart.
GBP/USD Technical Analysis
In the past few sessions, the British Pound saw a steady increase above the 1.4000 zone against the US Dollar. The GBP/USD pair broke the 1.4100 level and extended its upward move.
There was even a break above the 1.4200 resistance zone. A high was formed near 1.4233 on FXOpen and the pair is currently correcting gains. It broke the 1.4200 and 1.4180 support levels.
There was also a spike below the 1.4150 level and the 50 hourly simple moving average. A low is formed near 1.4136 and the pair is now consolidating. There is also a major bullish trend line forming with support near 1.4135 on the hourly chart of GBP/USD.
On the upside, an immediate resistance is near the 1.4160 level and the 50 hourly simple moving average. It is close to the 23.6% Fib retracement level of the recent decline from the 1.4233 high to 1.4136 low.
The first major resistance is near the 1.4185 level. The 50% Fib retracement level of the recent decline from the 1.4233 high to 1.4136 low is also near the 1.4185 level. Any more gains could set the pace for a strong rally above the 1.4200 level.
Conversely, the pair could break the trend line support and continue lower below 1.4135. The next major support is near the 1.4100 level. If there are additional losses, the pair could decline towards the 1.4000 level.
GBP/JPY Technical Analysis
The British Pound made many attempts to surpass 154.80 and 155.00 against the Japanese Yen. However, the GBP/JPY pair failed to gain strength and corrected lower below the 154.50.
The last swing high was formed near 154.67 before the pair dipped below 154.50. There was also a break below the 154.20 and the 50 hourly simple moving average. It traded as low as 153.98 and it is now consolidating.
An initial resistance on the upside is near the 154.15 level and 50 hourly simple moving average. It is close to the 23.6% Fib retracement level of the recent decline from the 154.67 high to 153.98 low.
The first major resistance is near the 154.30 level. The 50% Fib retracement level of the recent decline from the 154.67 high to 153.98 low is also near the 154.30 level. There is also a key bearish trend line forming with resistance near 154.40 on the hourly chart.
A clear upside break above the 154.40 level could open the doors for a larger increase. In the stated case, the pair is likely to grind higher towards the 154.80 and 155.00 resistance levels in the near term.
If not, there is a risk of more losses below the 153.80 level. The next major support sits near the 153.50 level, where the bulls might take a stand.
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.
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