GBP/USD and EUR/GBP Analysis: Recovery Wave and Consolidation
The British Pound (GBP) is attempting a fresh increase above 1.2420 against the US Dollar (USD), while the Euro (EUR) is consolidating against the GBP. This article provides an in-depth analysis of the current market trends and potential future movements.
GBP/USD Technical Analysis
The GBP/USD pair declined after failing to clear the 1.2600 resistance, trading below the 1.2500 support. However, the bulls have pushed the pair above the 50-hour simple moving average and 1.2450, breaking above a key bearish trend line with resistance at 1.2455. The pair has also climbed above the 50% Fib retracement level of the downward move from the 1.2607 swing high to the 1.2352 low.
On the upside, the GBP/USD chart indicates resistance near 1.2545 or the 76.4% Fib retracement level of the downward move from the 1.2607 swing high to the 1.2352 low. A close above the 1.2605 resistance zone could open the doors for a move toward 1.2650, with potential gains sending GBP/USD toward 1.2750.
On the downside, decent support is forming at 1.2480. A downside break below 1.2480 could accelerate the pair lower, with the first major support near the 1.2455 level. The next key support is seen near 1.2410, below which the pair could test 1.2350.
EUR/GBP Technical Analysis
The EUR/GBP pair started a consolidation phase after failing to surpass 0.8330. The Euro traded below the 0.8320 and 0.8300 support levels against the British Pound, declining below the 50% Fib retracement level of the upward move from the 0.8275 swing low to the 0.8317 high.
The EUR/GBP chart suggests that the pair is now facing resistance near the 0.8305 level, with a short-term contracting triangle forming. The next major resistance could be 0.8320, with the main resistance near the 0.8330 zone. A close above the 0.8330 level might accelerate gains, with potential targets at 0.8380 and 0.8400.
Immediate support sits near 0.8290, with the next major support near 0.8285 or the 76.4% Fib retracement level of the upward move from the 0.8275 swing low to the 0.8317 high. A downside break below the 0.8285 support might call for more downsides, with potential targets at 0.8265.
Conclusion
In conclusion, the GBP/USD pair is attempting a fresh increase above 1.2420, while the EUR/GBP pair is consolidating. The GBP/USD chart indicates potential resistance near 1.2545 and 1.2605, with support forming at 1.2480. The EUR/GBP chart suggests resistance near 0.8305 and 0.8330, with support near 0.8290 and 0.8285. Traders should monitor these levels closely to capitalize on potential market movements.
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Source: Fxopen.com
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