GBP/USD Dips Again While EUR/GBP Gains Strength
GBP/USD started a fresh decline from the 1.2430 resistance zone. EUR/GBP is rising and might climb above the 0.8755 resistance.
Important Takeaways for GBP/USD and EUR/GBP Analysis Today
- The British Pound is showing bearish signs below the 1.2310 support.
- There is a key bearish trend line forming with resistance near 1.2245 on the hourly chart of GBP/USD at FXOpen.
- EUR/GBP is gaining pace and trading above the 0.8720 zone.
- There is a major rising channel forming with support near 0.8735 on the hourly chart at FXOpen.
GBP/USD Technical Analysis
On the hourly chart of GBP/USD at FXOpen, the pair attempted a fresh increase above 1.2370, as discussed in the previous analysis. However, the British Pound failed above 1.2430 and started a fresh decline against the US Dollar.
There was a clear move below 1.2310 and the 50-hour simple moving average. The bears pushed the pair below 1.2250. Finally, there was a spike below the 1.2200 support zone. A low was formed near 1.2187 and the pair is now consolidating losses.
There was a minor move above toward the 23.6% Fib retracement level of the downward move from the 1.2428 swing high to the 1.2187 low.
On the upside, the GBP/USD chart indicates that the pair is facing resistance near the 50-hour simple moving average and a bearish trend line at 1.2245. The next major resistance is near the 50% Fib retracement level of the downward move from the 1.2428 swing high to the 1.2187 low at 1.2310.
A close above the 1.2310 resistance zone could open the doors for a move toward 1.2370. Any more gains might send GBP/USD toward 1.2430.
On the downside, there is a key support forming near 1.2210. If there is a downside break below the 1.2210 support, the pair could accelerate lower. The next major support is near the 1.2185 zone, below which the pair could test 1.2120. Any more losses could lead the pair toward the 1.2040 support.
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