News & Analysis / Analysis / GBP/USD and EUR/GBP: British Pound Could Gain Traction

GBP/USD and EUR/GBP: British Pound Could Gain Traction

FXOpen

GBP/USD settled above the key 1.2650 and 1.2660 support levels, with a positive bias. EUR/GBP started a major downside correction and broke a major support near 0.8960.

Important Takeaways for GBP/USD and EUR/GBP

  • The British Pound is trading nicely above the key 1.2660 support area.
  • There is a connecting bearish trend line forming with resistance near 1.2718 on the hourly chart of GBP/USD.
  • EUR/GBP formed a short term top near the 0.8991 level and recently declined below 0.8980.
  • There was a break below a major bullish trend line with support near 0.8958 on the hourly chart.

GBP/USD Technical Analysis

The British Pound started a decent upward move after it broke the 1.2600 resistance area against the US Dollar. As a result, the GBP/USD pair gained momentum above the 1.2620 and 1.2640 levels.

Moreover, there was a close above the key 1.2660 pivot level and the 50 hourly simple moving average. It traded towards the 1.2780 level on FXOpen and recently started a downside correction.

GBP/USD Technical Analysis British Pound US Dollar

However, the previous resistance near the 1.2650 and 1.2660 levels acted as a strong support. There were many attempts to clear the 1.2650 level, but sellers failed to gain control. The last swing low was near 1.2661 before the price climbed towards the 1.2734 level

It is currently correcting below the 1.2700 level and the 50% Fib retracement level of the last wave from the 1.2661 low to 1.2734 high. However, the 1.2690 level and the 50 hourly simple moving average are acting as a strong support.

Moreover, the 61.8% Fib retracement level of the last wave from the 1.2661 low to 1.2734 high is acting as a support. On the upside, there is a strong resistance forming near 1.2720 and 1.2730.

There is also a connecting bearish trend line forming with resistance near 1.2718 on the hourly chart of GBP/USD. Therefore, a successful break above the trend line and 1.2730 is needed for a fresh increase towards the 1.2780 or 1.2800 level.

On the downside, the main support is near the 1.2650 and 1.2660 levels. If there is a downside break below 1.2650, GBP/USD could decline back towards the 1.2600 support.

EUR/GBP Technical Analysis

The Euro climbed higher steadily this past week and broke the 0.8920 and 0.8950 resistance levels against the British Pound. The EUR/GBP pair even broke the 0.8980 level and traded close to the 0.9000 level.

However, the pair struggled to continue higher and a short term top was formed near the 0.8991 level. Later, the pair started a downside correction below the 0.8980 and 0.8975 levels.

EUR/GBP Technical Analysis Euro British Pound

There was a break below a major bullish trend line with support near 0.8958 on the hourly chart. Moreover, the pair broke the 61.8% Fib retracement level of the last wave from the 0.8937 low to 0.8991 high.

Finally, there was a close below 0.8950 and the 50 hourly simple moving average. The price is now trading below the 0.8940 level and it is testing the last swing low.

If there is a downside break, EUR/GBP could slide towards the 0.8930 support or the 1.236 Fib extension level of the last wave from the 0.8937 low to 0.8991 high at 0.8924.

On the upside, there is a strong resistance near the 0.8960 level and the 50 hourly SMA. A successful close above 0.8960 might start a fresh increase towards the 0.9000 level.

Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Stay ahead of the market!

Subscribe now to our mailing list and receive the latest market news and insights delivered directly to your inbox.

forex

Instrument
Live ECN bid
Live ECN ask
Action
EURUSD
1.03574
1.03574
Trade
GBPUSD
1.22509
1.22511
Trade
AUDUSD
0.62341
0.62344
Trade
USDJPY
155.807
155.810
Trade
USDCAD
1.44249
1.44252
Trade
More
Forex Trading with FXOpen

Forex Trading with FXOpen

Experience ECN technology for deep liquidity and light-speed trade execution

  • Access over 50 markets
  • Trade with spreads from 0.0 pips
  • Take advantage of commissions from $1.50/lot
Learn more

Latest articles

Forex Analysis

European Currencies Strengthen Following Donald Trump's Inauguration

The start of this trading week was marked by a sharp pullback in the US dollar. According to reports from The Wall Street Journal, the newly inaugurated US President, Donald Trump, does not intend to impose tariffs immediately after taking

Indices

Nasdaq 100: Bearish Signals Amid Increased Volatility

As revealed by the technical analysis of the 4-hour Nasdaq 100 chart (US Tech 100 mini on FXOpen), the ATR indicator has been above 125 since the start of 2025, in contrast to late 2024 when it was mostly below

Index Investing: A Practical Approach to Market Participation
Trader’s Tools

Index Investing: A Practical Approach to Market Participation

Index investing has become a popular way for traders and investors to access the broader market. By tracking the performance of financial indices like the S&P 500 or FTSE 100, index investing offers diversification, lower costs, and steady

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.