GBP/USD declined heavily below the key 1.2480 and 1.2425 support levels. EUR/GBP is currently climbing higher and it could even climb above the 0.9000 resistance area.
Important Takeaways for GBP/USD and EUR/GBP
- The British Pound started a major decline after it failed to stay above the 1.2460 support level.
- There was a break below a contracting triangle with support near the 1.2445 level on the hourly chart of GBP/USD.
- EUR/GBP climbed higher steadily and broke the key 0.8950 resistance area.
- There was a break above a major bearish trend line with resistance near 0.8970 on the hourly chart.
GBP/USD Technical Analysis
The British Pound failed to hold gains above the 1.2500 pivot level and started a steady decline against the US Dollar. The GBP/USD pair broke the key 1.2480 and 1.2450 support levels to enter a bearish zone.
There was a break below the 1.2425 support level and the 50 hourly simple moving average. Moreover, there was a break below a contracting triangle with support near the 1.2445 level on the hourly chart of GBP/USD.
Finally, there was a break below the 1.2400 support and the pair traded as low as 1.2361 on FXOpen. At the moment, the pair is showing a lot of bearish signs below the 1.2400 level.
An immediate resistance is near the 1.2395 and 1.2400 levels. The 23.6% Fib retracement level of the recent decline from the 1.2517 high to 1.2361 low is also near the 1.2398 level to act as a strong resistance.
However, the main resistance is near the 1.2425 level, which was a major support earlier. Besides, the 38.2% Fib retracement level of the recent decline from the 1.2517 high to 1.2361 low is also near the 1.2421 level to act as a resistance.
On the downside, an initial support is near the 1.2360 and 1.2350 levels. If there is a downside break below 1.2350, the pair could start a downside extension towards the 1.2300 level.
EUR/GBP Technical Analysis
The Euro formed a strong support near the 0.8900 level against the British Pound. The EUR/GBP pair started a steady rise above the 0.8920 resistance and broke the key 0.8950 resistance level.
There was a proper close above the 0.8950 resistance and the 50 hourly simple moving average. The pair even gained traction above the 76.4% Fib retracement level of the last decline from the 0.9005 high to 0.8892 low.
Moreover, there was a break above a major bearish trend line with resistance near 0.8970 on the hourly chart. It opened the doors for more gains and the pair is now trading near the 0.9000 resistance.
If there are more gains and an upside break above 0.9000, the pair could continue to rise towards the 0.9030 level. The 1.236 Fib extension level of the last decline from the 0.9005 high to 0.8892 low is near the 0.9030 level to act as a strong resistance.
Any further gains above 0.9030 might call for a test of the key 0.9060 resistance level in the coming sessions. Conversely, if EUR/GBP fails to climb above 0.9000 or 0.9005, it could start a fresh decrease.
An initial support is near the 0.8980 level, below which EUR/GBP could slide towards the main support near the 0.8950 level plus the 50 hourly simple moving average.