The GBP/USD pair is showing signs of strength as it continues to climb above the 1.2900 resistance level. There is a notable bullish trend line forming with support around 1.2910 on the hourly chart. The British Pound managed to break above key levels, such as the 50-hour simple moving average and 1.2900, indicating a bullish sentiment.
However, there is still resistance ahead near 1.2925 and 1.2950, which the pair needs to overcome in order to sustain its upward momentum. A close above the 1.2950 resistance zone could potentially lead to a push towards the 1.3000 mark, with further gains possibly targeting 1.3200. On the contrary, a break below the support at 1.2910 may trigger a bearish continuation towards 1.2860 and 1.2840 levels.
EUR/GBP Technical Analysis
On the other hand, the EUR/GBP pair has shown a decline from levels above 0.8460 and is currently consolidating losses around 0.8400. The pair breached the key support level at 0.8440, indicating a bearish trend. Although there was a minor uptick above a bearish trend line with resistance near 0.8425, the pair is still facing hurdles near the 23.6% Fib retracement level at 0.8435.
If the EUR/GBP pair manages to break above the 0.8435 resistance level, it could open the door for further upside towards 0.8460 and potentially 0.8500. On the contrary, a downside break below the 0.8400 support level may lead to additional losses towards 0.8360. The pair is currently trading below the 50-hour simple moving average, signaling a bearish bias.
Both the GBP/USD and EUR/GBP pairs are exhibiting interesting trends. While GBP/USD is striving for higher levels above 1.2950, EUR/GBP is struggling to maintain its ground below 0.8440. Traders should keep a close eye on the key resistance and support levels mentioned in the technical analysis to determine potential entry and exit points for their trades. Market participants should also be cautious of any unexpected developments that could influence the currency pairs’ movements in the coming sessions.