GBP/USD started a downside correction from the 1.2520 resistance zone. GBP/JPY is rising and might aim for more upsides above the 164.00 resistance.
Important Takeaways for GBP/USD and GBP/JPY
- The British Pound failed to break above the 1.2520 resistance and corrected lower against the US Dollar.
- There is a key bearish trend line forming with resistance near 1.2460 on the hourly chart of GBP/USD.
- GBP/JPY is slowly moving higher from the 163.00 zone.
- There is a key rising channel forming with support near 163.75 on the hourly chart.
GBP/USD Technical Analysis
This past week, the British Pound formed a base above the 1.2400 line against the US Dollar. The GBP/USD pair started a steady increase above the 1.2425 resistance.
There was a move above the 50-hour simple moving average at 1.2460. It resulted in a break above the 1.2500 level. However, the bears were active near the 1.2520 resistance zone. A high was formed near 1.2525, and the pair started a downside correction.
There was a break below the 23.6% Fib retracement level of the upward move from the 1.2274 swing low to the 1.2525 high. GBP/USD even settled below the 50-hour simple moving average.
The previous resistance at 1.2425 is now acting as a support. The next major support is near the 1.2400 level, which coincides with the 50% Fib retracement level of the upward move from the 1.2274 swing low to the 1.2525 high.
If there is a break below the 1.2400 support, the pair will substantially decline. In the stated case, there is a risk of a drop toward the 1.2330 level or the 1.2274 low in the coming days.
Conversely, the pair might attempt a fresh increase from the 1.2425 support. Resistance on the upside is near the 50-hour simple moving average at 1.2455. There is also a key bearish trend line forming with resistance near 1.2460 on the hourly chart of GBP/USD.
A close above the trend line resistance could stage a fresh increase. The hourly RSI is also moving higher and approaching 50, above which it might signal a decent increase. The next major resistance is near the 1.2500 level, above which the pair could revisit the 1.2520 resistance region. Any more gains might call for a move toward 1.2600.
GBP/JPY Technical Analysis
The British Pound started a fresh decline from the 166.40 zone against the Japanese Yen. The GBP/JPY pair declined below the 165.25 and 164.00 support levels.
It traded as low as 162.77, and the pair is now correcting higher. There was a move above the 163.00 pivot level. The bulls pushed the pair above the 23.6% Fib retracement level of the downward move from the 166.39 swing high to the 162.77 low.
It seems to be consolidating above the 50-hour simple moving average as the hourly RSI is flat above 50. Resistance on the upside is near the 164.00 zone.
The next key resistance could be near the 50% Fib retracement level of the downward move from the 166.39 swing high to the 162.77 low at 164.60. A clear break above the 164.60 resistance could push the pair toward the 165.25 resistance.
If not, the pair might start a fresh decline. On the downside, initial support is near a key rising channel on the hourly chart at 163.75.
A downside break below the channel support could encourage the bears to push the pair further lower. The next major support is near 163.00. Any more losses might call for a test of the 162.20 support level.
