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#1 26-12-2022 16:37:59

Okabe
Member
Registered: 18-08-2022
Posts: 96

GBP/USD Corrects Gains, EUR/GBP Remains Elevated

GBP/USD started a downside correction from the 1.2400 zone. EUR/GBP climbed higher above the 0.8750 and 0.8780 resistance levels.

Important Takeaways for GBP/USD and 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.

GBP/USD Technical Analysis
The British Pound faced a strong selling interest near the 1.2400 zone against the US Dollar. The GBP/USD pair formed a short-term top near 1.2400 and started a downside correction.

There was a clear move below the 1.2320 and 1.2280 support levels. The pair even declined below the 1.2120 level and the 50 hourly simple moving average. It traded as low as 1.1991 on FXOpen and is currently correcting losses.

https://fxopen.com/blog/en/content/images/size/w1000/2022/12/GBPUSD-Chart-3.png

Recently, there was a minor upside correction above the 1.2040 level. There was a clear move above the 1.2050 level. It is now approaching the 50% Fib retracement level of the downward move from the 1.2147 swing high to 1.1991 low.

On the upside, an initial resistance is near the 1.2080 level. There is also a key bearish trend line forming with resistance near 1.2090 on the hourly chart of GBP/USD.

The trend line is near the 61.8% Fib retracement level of the downward move from the 1.2147 swing high to 1.1991 low. The next main resistance is near the 1.2100 zone. A clear upside break above the 1.2100 and 1.2120 resistance levels could open the doors for a steady increase in the near term.

The next major resistance sits near the 1.2200 level. On the downside, an initial support is near the 1.2020 level, below which it could test the 1.2000 support.

The next major support is near the 1.1960 level. Any more losses could lead the pair towards the 1.1900 support zone.

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