GBP/USD started a fresh increase above the 1.2400 resistance zone. GBP/JPY is consolidating and might rise steadily above the 160.50 resistance zone.
Important Takeaways for GBP/USD and GBP/JPY
· The British Pound started a fresh increase above the 1.2420 resistance against the US Dollar.
· There is a key bullish trend line forming with support near 1.2465 on the hourly chart of GBP/USD.
· GBP/JPY is showing positive signs above the 158.50 and 159.00 support levels.
· There is a major bullish trend line forming with support near 159.20 on the hourly chart.
GBP/USD Technical Analysis
This past week, the British Pound formed a base above the 1.2150 level against the US Dollar. The GBP/USD pair started a steady increase above the 1.2200 and 1.2320 resistance levels.
There was also a clear move above the 1.2450 resistance and the 50 hourly simple moving average. The recent price action was bullish, and the pair even climbed above the 1.236 Fib extension level of the downward move from the 1.2500 swing high to 1.2329 low (formed on FXOpen).
It is now consolidating above the 1.2500 level. On the upside, the pair is facing resistance near the 1.2550 level. The next major hurdle is near the 1.2600 level.
The 1.618 Fib extension level of the downward move from the 1.2500 swing high to 1.2329 low is also near the 1.2600 zone. An upside break above 1.2600 could set the pace for a move towards the 1.2720 resistance zone.
If there is no upside break above 1.2600, the pair could start a fresh decline. An immediate support is near the 1.2500. The next major support is near the 1.2450 level.
There is also a key bullish trend line forming with support near 1.2465 on the hourly chart of GBP/USD. If there is a break below the 1.2450 support, the pair could test the 1.2320 support.
GBP/JPY Technical Analysis
The British Pound also started a fresh increase from the 155.50 support zone against the Japanese Yen. The GBP/JPY pair gained pace above the 160.00 level to enter a positive zone.
There was a clear move above the 161.00 level and the 50 hourly simple moving average. The pair traded as high as 161.82 before there was a downside correction. There was a break below the 160.00 level, but the pair remained well bid above 157.50.
A low is formed near 157.87 and the pair is now rising. There was a move above the 50% Fib retracement level of the recent decline from the 161.82 swing high to 157.87 low.
On the upside, GBP/JPY is facing resistance near the 160.30 level. It is near the 61.8% Fib retracement level of the recent decline from the 161.82 swing high to 157.87 low. The next key resistance could be 161.80.
A clear break above the 161.80 resistance could push the pair towards the 162.50 resistance. On the downside, an initial support is near the 159.35 level.
There is also a major bullish trend line forming with support near 159.20 on the hourly chart. The next major support is near the 159.80. If there is a downside break below the 159.80 support, the pair could decline towards the 157.50 support zone. Any more losses might send the pair towards the 156.00 level in the near term.
This forecast represents FXOpen Markets Limited opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Markets Limited products and services or as financial advice.