GBP/USD started a downside correction from the 1.3145 zone. EUR/GBP is eyeing more gains above the 0.8575 resistance zone.
Important Takeaways for GBP/USD and EUR/GBP Analysis Today
- The British Pound is trading in a bullish zone above 1.3080 against the US Dollar.
- There was a break below a key bullish trend line with support near 1.3085 on the hourly chart of GBP/USD at FXOpen.
- EUR/GBP started a fresh increase from the 0.8500 zone.
- There is a major bullish trend line forming with support near 0.8565 on the hourly chart at FXOpen.
GBP/USD Technical Analysis
On the hourly chart of GBP/USD at FXOpen, the pair started a fresh increase from the 1.2750 support zone. The British Pound climbed above the 1.3020 resistance zone against the US Dollar.
The bulls were able to pump the pair above 1.3080 and the 50-hour simple moving average. It tested the 1.3145 zone before it started a downside correction. There was a move below the 1.3100 level. Besides, there was a break below a key bullish trend line with support near 1.3085.
The pair is consolidating near the 23.6% Fib retracement level of the upward move from the 1.2910 swing low to the 1.3142 high.
On the downside, there is a major support forming near 1.3080. If there is a downside break below the 1.3080 support, the pair could accelerate lower. The next major support is near the 1.3020 zone. It is close to the 50% Fib retracement level of the upward move from the 1.2910 swing low to the 1.3142 high, below which the pair could test 1.2905.
Any more losses could lead the pair toward the 1.2750 support. On the upside, the GBP/USD chart indicates that the pair is facing resistance near the 50-hour simple moving average.
The next major resistance is near the 1.3145 level. If the RSI moves above 50 and the pair climbs above 1.3145, there could be another rally. In the stated case, the pair could rise toward the 1.3200 level or even 1.3240.
EUR/GBP Technical Analysis
On the hourly chart of EUR/GBP at FXOpen, the pair started a fresh increase from the 0.8500 zone. The Euro traded above the 0.8535 level to move into a positive zone against the British Pound.
The EUR/GBP chart suggests that the pair settled above the 50-hour simple moving average and 0.8565. It is now consolidating gains below the 0.8575 resistance zone. The RSI is moving lower and suggesting a minor downside correction.
If there is no move above 0.8575, the pair could correct lower. Immediate support sits at 0.8565 or the 23.6% Fib retracement level of the upward move from the 0.8534 swing low to the 0.8577 high.
The next major support is near the 61.8% Fib retracement level of the upward move from the 0.8534 swing low to the 0.8577 high at 0.8550. A downside break below the 0.8550 support might call for more downsides. In the stated case, the pair could drop toward the 0.8520 support level.
Immediate resistance is near 0.8575. The next major resistance for the bulls is near the 0.8600 handle. A close above the 0.8600 level might accelerate gains.
In the stated case, the bulls may aim for a test of 0.8640. Any more gains might send the pair toward the 0.8680 level in the coming sessions.
