GBP/USD Nosedives, EUR/GBP Could Climb Higher
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GBP/USD started a new decline well above 1.2000. EUR/GBP is on the rise and may move higher above the 0.8500 resistance.
Important takeaways GBP/USD and EUR/GBP
· The British pound started a fresh decline from the 1.2200 area against the US dollar.
· A key bearish trendline is forming on the GBP/USD hourly chart with resistance near 1.1850.
· EUR/GBP moved higher above the 0.8420 and 0.8450 resistance levels.
· A significant uptrend line is forming on the hourly chart with support near 0.8480.
GBP/USD Technical Analysis
The British pound struggled to clear the 1.2250 and 1.2200 resistance levels against the US dollar. The GBP/USD pair started a decline and moved below the 1.2120 support area.
There was a sharp decline below the 1.2000 support and the 50-hour simple moving average. The bears managed to push the pair below the 1.1920 level. A low of 1.1791 was formed in FXOpen and the pair is now consolidating losses.
On the upside, initial resistance is near the 1.1850 level. GBP/USD’s hourly chart also has a bearish trendline with resistance near 1.1850.
The trendline is close to the 23.6% Fib retracement level down the move from the 1.2138 swing high to 1.1791. The next major resistance is near the 1.1910 zone and the 50-hour simple moving average.
The main obstacle is near the 1.1950 and 1.1965 levels. It is close to the 50% Fib retracement level down the move from the 1.2138 swing high to 1.1791. A clear bullish trend above the 1.1950 and 1.1965 resistance levels may open the door for a steady rise in the near future. The next major resistance is near the 1.2000 level.
On the downside, initial support is near the 1.1800 level. The next major support is near the 1.1750 level. An increase in losses may lead the pair towards the support area of 1.1680 or even 1.1620.
EUR/GBP Technical Analysis
The euro formed a base above 0.8400 against the British pound. The EUR/GBP pair started a new uptrend and was able to clear the 0.8450 resistance area.
The pair even traded above the 0.8480 level and the 50-hour simple moving average. It is trading as high as 0.8511 and is currently correcting lower. There was a rally below the 23.6% Fib retracement level from the 0.8425 swing to the 0.8511 high.
On the downside, initial support is near the 0.8480 level. There is also a significant uptrend line on the hourly chart with support near 0.8480.
The next major support is near 0.8365 or the 50-hour simple moving average. It is near the 50% Fib retracement level on the upside from the 0.8425 swing to the 0.8511 high. The downside below the 0.8365 support may call for further downside.
In the mentioned case, the pair may fall towards the 0.8320 support level in the near future. On the upside, immediate resistance is near the 0.8500 level.
The next major resistance for the bulls is near the 0.8520 level. A clear move above the 0.8520 resistance could push the price higher towards the 0.8550 level.
This forecast represents the opinion of FXOpen Markets Limited only and should not be construed as an offer, invitation or recommendation of FXOpen Markets Limited’s products and services or as financial advice.
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