GBP/USD began a downward correction at the 1.2400 level. EUR/GBP increased above the 0.8780 and0.8750 resistance levels.
What are the most important points for GBP/USD & EUR/GBP?
· The British Pound started a fresh decline from the 1.2400 resistance against the US Dollar.
· There is a key bearish trend line forming with resistance near 1.2090 on the hourly chart of GBP/USD.
· EUR/GBP started a decent increase above the 0.8720 and 0.8750 resistance levels.
· There is a connecting bullish trend line forming with support near 0.8765 on the hourly chart.
Technical Analysis of GBP/USD
British Pound saw strong selling interest against the US Dollar at 1.2400. GBP/USD formed a short-term peak at 1.2400, and began a downward correction.
Clear movement below the 1.2320 support level and 1.2280 support levels was evident. Even below the 1.2120 and 50 hourly simple moving average, the pair declined. FXOpen saw it trade as low as 1.1991 and is currently correcting its losses.
Recently, there was an upside correction above 1.2040. Clear movement was seen above the 1.2050 mark. It is now nearing the 50% Fib Retracement level of the downmove from the 1.2147 swing high.