Market Analysis: GBP/USD Extends Losses While EUR/GBP Gains Strength

<img src="https://images.unsplash.com/photo-1580971266928-ff5d40c194a7?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wxMTc3M3wwfDF8c2VhcmNofDF8fHN0ZXJsaW5nfGVufDB8fHx8MTY5NTAxOTQyM3ww&amp;ixlib=rb-4.0.3&amp;q=80&amp;w=2000" alt="Market Analysis: GBP/USD Extends Losses While EUR/GBP Gains Strength" /><p><em>GBP/USD extended losses and traded below the 1.2465 support. EUR/GBP is rising and might climb above the 0.8615 resistance.</em></p><h2>Important Takeaways for GBP/USD and EUR/GBP Analysis Today</h2><p>· The British Pound is showing bearish signs below 1.2420.</p><p>· There is a key bearish trend line forming with resistance near 1.2465 on the hourly chart of GBP/USD at FXOpen.</p><p>· EUR/GBP is rising and trading above the 0.8600 zone.</p><p>· There was a break above a connecting bearish trend line with resistance near 0.8600 on the hourly chart at FXOpen.</p><h2>GBP/USD Technical Analysis</h2><p>On the hourly chart of GBP/USD at FXOpen, the pair attempted a fresh increase above 1.2500. However, the British Pound failed above 1.2540 and started a fresh decline against the US Dollar.</p><p>There was a clear move below the 1.2465 support and the 50-hour simple moving average. The pair even tested the 1.2380 support zone. A low was formed near 1.2378 and the pair is now consolidating losses.</p><figure><img src="https://fxopen.com/blog/en/content/images/2023/09/gbpusd–18-.png" alt="Market Analysis: GBP/USD Extends Losses While EUR/GBP Gains Strength" loading="lazy" width="2000" height="1099" srcset="https://fxopen.com/blog/en/content/images/size/w600/2023/09/gbpusd–18-.png 600w, https://fxopen.com/blog/en/content/images/size/w1000/2023/09/gbpusd–18-.png 1000w, https://fxopen.com/blog/en/content/images/size/w1600/2023/09/gbpusd–18-.png 1600w, https://fxopen.com/blog/en/content/images/size/w2400/2023/09/gbpusd–18-.png 2400w" sizes="(min-width: 720px) 720px" /></figure><p>On the upside, the GBP/USD chart indicates that the pair is facing resistance near the 23.6% Fib retracement level of the downward move from the 1.2548 swing high to the 1.2378 low at 1.2420 and the 50-hour simple moving average.</p><p>The next major resistance is near a bearish trend line at 1.2465. It is close to the 50% Fib retracement level of the downward move from the 1.2548 swing high to the 1.2378 low.</p><p>A close above the 1.2465 resistance zone could open the doors for a move toward 1.2510. Any more gains might send GBP/USD toward 1.2545. On the downside, there is a key support forming near 1.2380. If there is a downside break below the 1.2380 support, the pair could accelerate lower.</p><p>The next major support is near the 1.2320 zone, below which the pair could test 1.2250. Any more losses could lead the pair toward the 1.2200 support.</p><h2>EUR/GBP Technical Analysis</h2><p>On the hourly chart of EUR/GBP at FXOpen, the pair started a steady increase from the 0.8570 zone. The Euro traded above the 0.8580 pivot level to enter a positive zone against the British Pound.</p><p>The EUR/GBP chart suggests that the pair settled above the 50-hour simple moving average and 0.8590. There was also a break above a connecting bearish trend line with resistance near 0.8600. A high is formed near 0.8615 and the pair is now consolidating gains.</p><figure><img src="https://fxopen.com/blog/en/content/images/2023/09/eurgbp–6-.png" alt="Market Analysis: GBP/USD Extends Losses While EUR/GBP Gains Strength" loading="lazy" width="2000" height="1099" srcset="https://fxopen.com/blog/en/content/images/size/w600/2023/09/eurgbp–6-.png 600w, https://fxopen.com/blog/en/content/images/size/w1000/2023/09/eurgbp–6-.png 1000w, https://fxopen.com/blog/en/content/images/size/w1600/2023/09/eurgbp–6-.png 1600w, https://fxopen.com/blog/en/content/images/size/w2400/2023/09/eurgbp–6-.png 2400w" sizes="(min-width: 720px) 720px" /></figure><p>It tested the 23.6% Fib retracement level of the upward move from the 0.8568 swing low to the 0.8615 high. Immediate support sits near the 50-hour simple moving average at 0.8590.</p><p>The 50% Fib retracement level of the upward move from the 0.8568 swing low to the 0.8615 high is also near 0.8590. The next major support is near 0.8580. A downside break below the 0.8580 support might call for more downsides. In the stated case, the pair could drop toward the 0.8560 support level.</p><p>Immediate resistance is near 0.8615. The next major resistance could be 0.8645. A close above the 0.8645 level might accelerate gains. In the stated case, the bulls may perhaps aim for a test of 0.8680. Any more gains might send the pair toward the 0.8720 level.</p>