Market Analysis: GBP/USD Dips Again While EUR/GBP Holds Support

GBP/USD failed to climb above 1.3500 and corrected some gains. EUR/GBP started a decent increase and might aim for more gains above 0.8710.

Important Takeaways for GBP/USD and EUR/GBP Analysis Today

· The British Pound is showing bearish signs below the 1.3400 support.

· There is a key bearish trend line forming with resistance near 1.3370 on the hourly chart of GBP/USD at FXOpen.

· EUR/GBP is gaining pace and trading above the 0.8700 handle.

· There is a connecting bullish trend line forming with support at 0.8695 on the hourly chart at FXOpen.

GBP/USD Technical Analysis

On the hourly chart of GBP/USD at FXOpen, the pair failed to stay above the 1.3450 pivot level. As a result, the British Pound started a fresh decline below 1.3420 against the US Dollar.

There was a clear move below 1.3400 and the 50-hour simple moving average. The bears pushed the pair below 1.3300. Finally, there was a spike below the 1.3280 support zone. A low was formed near 1.3261 and the pair is now consolidating losses.

There was a minor move above 1.3315 and the 23.6% Fib retracement level of the downward move from the 1.3489 swing high to the 1.3261 low. On the upside, the GBP/USD chart indicates that the pair is facing resistance near a key bearish trend line at 1.3370 and 1.3375.

The 50% Fib retracement is also at 1.3375. A close above the trend line and then 1.3375 might start a decent increase. In the stated case, the pair might rise toward 1.3435. Any more gains might send GBP/USD to 1.3500.

On the downside, there is a key support forming near 1.3315. If there is a downside break below 1.3315, the pair could accelerate lower. The next key interest area might be 1.3260, below which the pair could test 1.3220. Any more losses could lead the pair toward 1.3150.

EUR/GBP Technical Analysis

On the hourly chart of EUR/GBP at FXOpen, the pair started a decent increase from 0.8650. The Euro traded above 0.8675 to enter a positive zone against the British Pound.

The pair settled above the 50-hour simple moving average and 0.8700. The pair traded as high as 0.8725 before there was a downside correction. There was a move below the 23.6% Fib retracement level of the upward move from the 0.8656 swing low to the 0.8725 high.

However, the pair is stable above 0.8675 and the 50% Fib retracement. Besides, there is a connecting bullish trend line forming with support at 0.8695.

A downside break below the 0.8695 support might call for more downsides. In the stated case, the pair could drop toward 0.8675. Any more losses might call for an extended drop toward the 0.8655 pivot zone.

The EUR/GBP chart suggests that the pair is facing hurdles near 0.8710. A close above 0.8710 might accelerate gains. In the stated case, the bulls may perhaps aim for a test of 0.8725. Any more gains might send the pair to 0.8750.