Sat. Oct 16th, 2021

GBP / USD started a steady rise above the resistance of 1.3700. The EUR / GBP consolidates gains above the support area of ​​0.8550.

For important takeaways for GBP / USD and EUR / GBP

· The British pound gained a pace above the 1.3680 and 1.3700 resistance levels.

· There was a break above a key bearish trend line with a resistance near 1.3720 in the GBP / USD time chart.

· The EUR / GBP started a decent rise and was above the pivot level of 0.8550.

· There is a significant uptrend line that is formed with a support close to 0.8565 in the hourly chart.

GBP / USD technical analysis

The British pound formed a base above the 1.3620 area against the US dollar. As a result, the GBP / USD pair started a steady rise above the 1.3680 resistance zone.

The pair even broke the 1.3700 resistance and stood above the 50-hour simple moving average. There was also a break above a key bearish trend line with resistance near 1.3720 in the GBP / USD time chart.

GBP / USD time chart

The pair is now struggling to break the 1.3900 resistance barrier. It forms a high near the 1.3780 level in FXOpen and the pair consolidates gains.

There was a decline to 23.6% in the upward level of the upward fiber from the low of 1.3679 to 1.3780 high. The first key support is near the 1.3730 level and the 50-hour simple moving average.

It is close to the 50% retreat level of the upward fiber from the low of 1.3679 to 1.3780 high. Any further loss could drive the pair towards the 1.3680 support zone. On the upside, an immediate resistance is approaching the level of 1.3780.

The main resistance is near the 1.3800 zone. Therefore, a proper break above the 1.3900 resistance could open the doors for a steady rise. The next big resistance for oxen could be 1.4000. An intermediate resistance is seen near the 1.3950 level.

EUR / GBP technical analysis

The euro began a sharp rise after hovering above the 0.8500 area against the British pound. The EUR / GBP pair cleared the resistance level of 0.8550.

Recently, a test of the 0.8585 resistance zone was made. The pair struggled to continue higher and formed a high near 0.8588. It was corrected below 0.8565 and the simple 50-hour moving average.

Hourly chart EUR / GBP

A low of about 0.8557 was formed and now the pair is moving higher. It exceeded 50% of the downward level of the downward movement fiber from 0.8588 maximum to 0.8557 minimum.

An immediate resistance is approaching the level of 0.8580. It is approaching 76.4% of the downward level of the downward movement fiber from 0.8588 maximum to 0.8557 minimum. The main resistance is near the levels 0.8588 and 0.8595. A closure above 0.8600 could lead to an increase in doors.

Initial support for the downside is approaching the 0.8570 level. There is also a major uptrend line that is formed with a support close to 0.8565 on the hourly chart. The next major support is near the 0.8550 level.

A bearish break below the support levels of 0.8555 and 0.8550 could mean further disadvantages. In the indicated case, the pair could decrease towards the short-term support level 0.8520.

This provision represents only the opinion of FXOpen Markets Limited, should not be construed as an offer, invitation or recommendation regarding the products and services of FXOpen Markets Limited or as financial advice.

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