Last Updated on March 8, 2021
GBP/USD surged above 1.4150 before starting a fresh decline below 1.4000. GBP/JPY is rising and it remains supported for more gains above 150.50
Important Takeaways for GBP/USD and GBP/JPY
- The British Pound started a fresh decline below the 1.4000 support zone against the US Dollar.
- There was a break below a rising channel with support near 1.3925 on the hourly chart of GBP/USD.
- GBP/JPY climbed higher steadily above the 149.00 and 150.00 resistance levels.
- There is a major bullish trend line forming with support near 149.70 on the hourly chart.
GBP/USD Technical Analysis
This past week, the British Pound topped near the 1.4200 level against the US Dollar. The GBP/USD pair started a fresh decline and traded below many key supports near the 1.4100 level.
The pair even broke the 1.4000 support level and settled below the 50 hourly simple moving average. Recently, there was a break below a rising channel with support near 1.3925 on the hourly chart of GBP/USD.
The pair even spiked below the 1.3800 level. A low is formed near 1.3778 on FXOpen and the pair is currently consolidating losses. An initial resistance is near the 1.3885 level.
The 23.6% Fib retracement level of the recent decline from the 1.4016 high to 1.3778 low is also near the 1.3885 level. The next major resistance is near the 1.3890 level and the 50 hourly simple moving average.
The 50% Fib retracement level of the recent decline from the 1.4016 high to 1.3778 low is the next barrier near 1.3900. A close above the 1.3900 level may possibly lift the pair higher towards the 1.4000 resistance zone.
If not, there is a risk of more downsides below the 1.3800 support zone. The next major support is near the 1.3740 level, below which the pair could decline towards the 1.3680 level.
GBP/JPY Technical Analysis
The British Pound started a strong increase from the 148.00 resistance against the Japanese Yen. The GBP/JPY pair even cleared the 149.00 and 150.00 resistance levels to move further into a positive zone.
The pair spiked above the 150.50 resistance and settled above the 50 hourly simple moving average. A high was formed near 150.72 before the pair corrected lower. It traded below the 150.00 level, but the bulls protected losses below 149.20.
There is also a major bullish trend line forming with support near 149.70 on the hourly chart. The pair is currently rising and it broke the 50% Fib retracement level of the recent decline from the 150.72 high to 149.36 low.
The first major resistance is near the 105.50 level or the 76.4% Fib retracement level of the recent decline from the 150.72 high to 149.36 low. To continue higher, the pair must gain momentum above 105.50 and 105.60. The next major resistance sits near the 106.20 level, followed by 106.50.
On the downside, the trend line support holds a lot of importance near the 149.70 zone. If there is a downside break below the trend line support, there is a risk of a sharp decline.
The next major support is near the 149.00 level. Any more losses could lead the pair towards the 148.00 support zone in the coming sessions.
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