British Pound Technical Update (GBP) is under the spotlight as it continues to grapple with downward pressures against major currencies.
GBP, GBP/USD, GBP/JPY – Technical Assessment
- The British Pound remains in a downtrend.
- GBP/USD highlights the 200-day MA breakout
- EUR/GBP approaches significant resistance levels
British Pound Technical Update-GBP/USD, EUR/GBP Show that Sterling Remains Pressured
The GBP/USD pair has experienced a consistent decline, underscored by a significant breakout beneath the crucial 200-day Moving Average. This development confirms the prevailing bearish sentiment, initiated by the breach of a bearish Head & Shoulders chart pattern, signifying a persistent downward trajectory. Market analysts are closely watching the May low at 1.2308 as the next crucial support level. A further decline would underscore the short-term bearish bias, while a potential reversal would redirect attention to the Head and shoulders neckline at approximately 1.2592.
Concurrently, the British Pound is facing similar challenges against the Euro (EUR). EUR/GBP, there is an ongoing attempt to confirm a breakout above the key resistance level at 0.861, in addition to the 100-day Moving Average. While this development could indicate a stronger bullish technical outlook for the exchange rate, the broader outlook remains neutral.
EUR/GBP is currently consolidating within a defined range, featuring resistance levels spanning from 0.8658 to 0.8701 and support levels from 0.8493 to 0.8519. Recent progress suggests a potential retest of these resistance levels, along with the overarching descending trendline from February. However, analysts caution that these levels could pose formidable resistance, necessitating further efforts from EUR/GBP to establish a more robust bullish technical stance.
Market observers are closely watching these unfolding developments as the British Pound grapples with technical challenges within the global financial markets.
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