GBP/USD is eyeing an upside break above the 1.3820 resistance zone. EUR/GBP is rising and it could gain pace if it clears the 0.8465 resistance.
Important Takeaways for GBP/USD and EUR/GBP
· The British Pound was able to gain pace above the 1.3700 and 1.3750 resistance levels.
· There is a key rising channel forming with support near 1.3760 on the hourly chart of GBP/USD.
· EUR/GBP formed a support base above 0.8420 and started a fresh increase.
· There was a break above a major bearish trend line with resistance near 0.8440 on the hourly chart.
GBP/USD Technical Analysis
The British Pound started a major increase from the 1.3440 support zone against the US Dollar. The GBP/USD pair traded above the 1.3600 resistance zone to move into a positive zone.
The pair even broke the 1.3750 resistance zone and settled above the 50 hourly simple moving average. It even spiked above 1.3800 and traded as high as 1.3835. GBP/USD is now correcting gains and trading below 1.3800.
An immediate support is near the 1.3760 level. It is near the 23.6% Fib retracement level of the upward move from the 1.3413 swing low to 1.3835 high.
It is now consolidating near the 1.3780 level. There is also a key rising channel forming with support near 1.3760 on the hourly chart of GBP/USD. A downside break below the channel support might even push the pair below the 1.3700 support zone.
The next major support is near the 1.3650 level. The 50% Fib retracement level of the upward move from the 1.3413 swing low to 1.3835 high is also near the 1.3650 zone.
Any more downsides might call for a move towards the 1.3600 level. On the upside, the pair is facing resistance near 1.3820. If there is an upside break above the 1.3820 resistance, the price could surpass 1.3850.
The next main resistance is near the 1.3920 zone, above which the pair could rise towards the 1.4000 level in the near term.
EUR/GBP Technical Analysis
The Euro started a strong increase after it formed a base above 0.8420 against the British Pound. The EUR/GBP pair surpassed the 0.8440 level to move into a positive zone.
There was also a break above a major bearish trend line with resistance near 0.8440 on the hourly chart. The pair settled above the 0.8500 zone and the 50 hourly simple moving average. It is now facing resistance near the 0.8465 level.
An immediate resistance is near the 0.8465 level. A clear break above the 0.8465 level may possibly lift the pair towards the 0.8500 resistance. The next major stop for the bulls could be 0.8550.
An initial support on the downside is near the 0.8450 level. It is near the 38.2% Fib retracement level of the upward move from the 0.8421 swing low to 0.8467 high.
The next major support is near 0.8440 level. It is near the 50% Fib retracement level of the upward move from the 0.8421 swing low to 0.8467 high. A downside break below the 0.8445 and 0.8440 support levels might call for more downsides. In the stated case, the pair could decline towards the 0.8400 support level in the near term.
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.
Be the first to comment