GBP/USD Attempts Fresh Increase
GBP/USD is attempting a fresh increase from the 1.2770 region.
Important Takeaways for GBP/USD Analysis Today
- The British Pound started a steady increase above the 1.2805 resistance.
- There is a short-term contracting triangle forming with resistance near 1.2860 on the hourly chart of GBP/USD at FXOpen.
GBP/USD Technical Analysis
On the hourly chart of GBP/USD at FXOpen, the pair started a fresh decline from the 1.3000 zone. As mentioned in the previous analysis, the British Pound would remain at risk of more downsides if it cleared the 1.2840 and 1.2805 levels against the US Dollar.
The pair extended its decline and tested the 1.2770 zone. A low is formed near 1.2762, and the pair is now attempting a fresh increase. There was a move above the 23.6% Fib retracement level of the downward move from the 1.2995 swing high to the 1.2762 low.
The pair is now consolidating below the 50-hour simple moving average. The GBP/USD chart indicates that the pair is facing resistance near a short-term contracting triangle at 1.2860.
The next major resistance is near the 50% Fib retracement level of the downward move from the 1.2995 swing high to the 1.2762 low at 1.2880. The main breakout zone could be 1.2900. If the RSI moves above 60 and the pair climbs above 1.2900, there could be another rally. In the stated case, the pair could rise toward the 1.3000 level or even 1.3050.
On the downside, there is a major support forming near 1.2805. If there is a downside break below it, the pair could accelerate lower.
The next major support is near the 1.2770 zone, below which GBP/USD could test 1.2740. Any more losses could lead the pair toward 1.2650.
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