GBP/USD started a decent recovery wave above the 1.1250 resistance. GBP/JPY is also rising and might climb further higher above the 167.00 zone.
Important Takeaways for GBP/USD and GBP/JPY
· The British Pound started a recovery wave above the 1.1250 resistance against the US Dollar.
· There is a key bearish trend line forming with resistance near 1.1395 on the hourly chart of GBP/USD.
· GBP/JPY declined heavily before it found support near the 165.00 zone.
· There is a major bearish trend line forming with resistance near 167.00 on the hourly chart.
GBP/USD Technical Analysis
This past week, the British Pound found support near the 1.1150 zone against the US Dollar. The GBP/USD pair formed a base and started a steady recovery wave above the 1.1200 level.
There was a clear move above the 1.1250 resistance and the 50 hourly simple moving average. The pair even traded above the 38.2% Fib retracement level of the main decline from the 1.1564 swing high to 1.1146 low (formed on FXOpen).
An immediate resistance on the upside is near the 1.1355 level. It is near the 50% Fib retracement level of the main decline from the 1.1564 swing high to 1.1146 low.
The next major resistance is near the 1.1380 level. There is also a key bearish trend line forming with resistance near 1.1395 on the hourly chart of GBP/USD, above which the pair could start a steady increase towards 1.1450.
An upside break above 1.1450 might start a fresh increase towards 1.1550. Any more gains might call for a move towards 1.1600 or even 1.1640.
An immediate support is near the 1.1300. The next major support is near the 1.1270 level and the 50 hourly simple moving average. If there is a break below the 1.1270 support, the pair could test the 1.1200 support. Any more losses might send GBP/USD towards 1.1150.
GBP/JPY Technical Analysis
The British Pound started a fresh decline from well above the 170.00 level against the Japanese Yen. The GBP/JPY pair declined heavily below the 168.00 and 167.00 support levels.
There was also a close below the 167.00 level and the 50 hourly simple moving average. It traded as low as 165.08 before the bulls appeared. There was a steady recovery wave above the 166.00 level and the 50 hourly simple moving average.
An immediate resistance on the upside is near the 166.75 zone. It is near the 23.6% Fib retracement level of the main decline from the 172.12 swing high to 165.08 low.
The next key resistance could be 167.00. There is also a major bearish trend line forming with resistance near 167.00 on the hourly chart. A clear break above the 167.00 resistance could push the pair towards the 168.50 resistance.
It is near the 50% Fib retracement level of the main decline from the 172.12 swing high to 165.08 low. If not, the pair could start another decline below the 166.00 level.
On the downside, an initial support is near the 165.50 level. The next major support is near the 165.00. If there is a downside break below the 165.00 support, the pair could decline towards the 164.00 support zone. Any more losses might send the pair towards the 162.50 level in the near term.
This forecast represents FXOpen Companies opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Companies products and services or as financial advice.
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