British Pound Technical Analysis & Trade Setups: GBP/USD, EUR/GBP, GBP/JPY

February 28, 2024

2 minutes read

GBP/USD FORECAST – TECHNICAL ANALYSIS

GBP/USD fell on Wednesday, breaching its 50-day simple moving average. A confirmation of this breakdown with a daily close below the indicator might escalate selling pressure, potentially leading to a descent toward trendline support near 1.2600. On continued weakness, all eyes will be on the 200-day simple moving average around 1.2570.

In the event of a market turnaround, the first challenge for the bulls will be to regain control of the 50-day SMA located at 1.2675. Accomplishing this task could spark a rally towards trendline resistance at 1.2720. Beyond this threshold, sustained strength could reinforce upward momentum, laying the groundwork for a climb toward 1.2830.

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GBP/USD PRICE ACTION CHART

GBP/USD Chart Created Using TradingView

EUR/GBP FORECAST – TECHNICAL ANALYSIS

EUR/GBP has been locked in a persistent downtrend since last November, carving lower highs and lower lows in the process. This pullback took prices to an almost six-month low around 0.8500 earlier this month, down about 3% from the high reached late last year. Nevertheless, a tentative rebound appears to be underway.

Following the recent upturn, the pair is steadily approaching overhead resistance at 0.8575. A decisive break above this barrier is crucial for the euro to establish a more sustained recovery, potentially opening a path toward the 200-day simple moving average at 0.8610.

Conversely, if EUR/GBP is turned away from its current position and takes a downward turn, support looms at 0.8530, followed by 0.8500. Prices are expected to find a floor around these levels during a retracement before a possible shift in direction, yet a breakdown could prompt sellers to initiate a push towards 0.8450.

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EUR/GBP PRICE ACTION CHART

EUR/GBP Char Creating Using TradingView

GBP/JPY FORECAST – TECHNICAL ANALYSIS

Following its climb to multi-year highs above the 191.00 mark earlier this week, GBP/JPY has started to retreat, edging towards trendline support at 190.20 by Wednesday. Bulls must staunchly defend this technical zone to avert a deeper retracement; failure to do so could provoke a descent towards 188.50. Further losses from this juncture could shift attention to the 50-day simple moving average.

On the other hand, if buyers mount a comeback and spark a rebound, resistance is positioned at 191.30. Overcoming this obstacle might pose a challenge for the bullish camp, but a successful breakout could fuel a rally toward the psychological 193.00 level. Additional gains beyond this point would turn the market’s gaze directly to 196.00, the 2015 peak.

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