GBP/USD started a steady increase above the key 1.1880 resistance. USD/CAD is consolidating and might rise further toward 1.4000.
Important Takeaways for GBP/USD and USD/CAD Analysis
· The British Pound was able to clear the 1.1880 and 1.2000 resistance levels.
· There was a break above a major bearish trend line with resistance near 1.2250 on the weekly chart of GBP/USD on FXOpen.
· USD/CAD is facing strong resistance near the 1.3750 zone.
· It is trading inside a key contracting triangle with resistance at 1.3750 on the weekly chart at FXOpen.
GBP/USD Technical Analysis
On the weekly chart of GBP/USD at FXOpen, the pair formed a base above the 1.1250 zone and started a steady increase. The British Pound broke the key 1.1880 resistance zone against the US Dollar to enter a positive zone.
There was a move above a major bearish trend line with resistance near 1.2250 and the 50-week simple moving average. The pair settled above the 50% Fib retracement level of the main decline from the 1.4249 swing high to the 1.0327 low.
The GBP/USD chart suggests that the pair is now facing resistance near the 61.8% Fib retracement level of the main decline from the 1.4249 swing high to the 1.0327 low at 1.2750.
A clear upside break above the 1.2750 resistance might send the pair toward the 1.3320 resistance. Any more gains might send GBP/USD toward the 1.4250 level.
On the downside, initial support is near the trend line zone and 1.2200. The next major support is near the 1.1880 level. If there is a break below 1.1880, the pair could extend its decline. The next key support is near the 1.1250 level. Any more losses might call for a retest of the 1.0325 support.
USD/CAD Technical Analysis
On the weekly chart of USD/CAD at FXOpen, the pair started a fresh increase from the 1.2400 support. The US Dollar climbed higher above the 1.3000 resistance to move into an uptrend.
The pair even broke the 1.3750 resistance and spiked toward 1.4000. A high was formed near 1.3977 before the pair corrected gains. It is now trading inside a key contracting triangle with resistance at 1.3750.
Immediate support on the USD/CAD chart is near the triangle trend line at 1.3350 and the 50-week simple moving average. The first major support is near the 50% Fib retracement level of the upward move from the 1.2402 swing low to the 1.3977 high at 1.3200.
The next major support is near the 61.8% Fib retracement level of the upward move from the 1.2402 swing low to the 1.3977 high at 1.3000. Any more losses may possibly open the doors for a drop toward the 1.2400 support zone in the medium term.
On the upside, the pair is facing resistance near the 1.3600 zone. The next major resistance is near the 1.3750 level. A clear break above the 1.3750 level could open the doors for more gains. The next major resistance is near the 1.4000 level, above which USD/CAD could rise steadily toward the 1.4200 resistance zone.
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