Market Analysis: GBP/USD Dips While USD/CAD Could Extend Gains

FXOpen

GBP/USD is moving lower from the 1.2650 resistance. USD/CAD is rising and might aim for more gains above the 1.3620 resistance.

Important Takeaways for GBP/USD and USD/CAD Analysis Today

· The British Pound started a fresh decline below the 1.2615 support zone.

· There is a key bearish trend line forming with resistance near 1.2565 on the hourly chart of GBP/USD at FXOpen.

· USD/CAD is showing positive signs above the 1.3580 support zone.

· There was a break above a major bearish trend line with resistance near 1.3585 on the hourly chart at FXOpen.

GBP/USD Technical Analysis

On the hourly chart of GBP/USD at FXOpen, the pair started a fresh decline from the 1.2650 zone. The British Pound traded below the 1.2615 support to move into further a bearish zone against the US Dollar.

The pair even traded below 1.2565 and the 50-hour simple moving average. Finally, the bulls appeared near the 1.2515 level. A low was formed near 1.2514 and the pair is now attempting a recovery wave.

Immediate resistance on the upside is near a key bearish trend line at 1.2565 or the 50-hour simple moving average. It is close to the 50% Fib retracement level of the downward move from the 1.2615 swing high to the 1.2514 low.

The first major resistance on the GBP/USD chart is near the 76.4% Fib retracement level of the downward move from the 1.2615 swing high to the 1.2514 low at 1.2590.

A close above the 1.2590 resistance might spark a steady upward move. The next major resistance is near 1.2640. Any more gains could lead the pair toward the 1.2700 resistance in the near term.

Initial support sits near 1.2540. The next major support sits at 1.2515, below which there is a risk of another sharp decline. In the stated case, the pair could drop toward 1.2440.

USD/CAD Technical Analysis

On the hourly chart of USD/CAD at FXOpen, the pair formed a strong support base above the 1.3550 level. The US Dollar started a fresh increase above the 1.3575 resistance against the Canadian Dollar.

There was a break above a major bearish trend line with resistance near 1.3585. The pair cleared the 50-hour simple moving average and climbed above 1.3600. Finally, it tested the 1.3620 zone. A high was formed near 1.3618 before there was a downside correction.

The pair dipped below the 1.3600 level and the 23.6% Fib retracement level of the upward move from the 1.3550 swing low to the 1.3620 high.

Initial support is near the 50-hour simple moving average and the 50% Fib retracement level of the upward move from the 1.3550 swing low to the 1.3620 high at 1.3580.

The next major support is near 1.3550 on the same USD/CAD chart. The main support sits near 1.3530. A downside break below the 1.3530 level could push the pair further lower. The next major support is near the 1.3480 support zone, below which the pair might visit 1.3420.

Initial resistance sits near the 1.3600 zone. A clear upside break above 1.3600 could start another steady increase. The next major resistance is the 1.3620 level. A close above the 1.3620 level might send the pair toward the 1.3680 level. Any more gains could open the doors for a test of the 1.3740 level.

Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Stay ahead of the market!

Subscribe now to our mailing list and receive the latest market news and insights delivered directly to your inbox.

Latest articles

BTC/USD Analysis: Price Approaching Key Resistance
Cryptocurrencies

BTC/USD Analysis: Price Approaching Key Resistance

Analysing the long-term BTC/USD chart on 16th May, we created a "roadmap" for Bitcoin's price, which looked like an expanding fan and consisted of a median line with support levels below it and resistance levels above it.

Today, when

MSFT Share Price Dropped After Global Outage
Shares

How Did MSFT Stock Price React To Global Outage?

On 19th July, a global outage occurred. Numerous computers running Windows worldwide experienced "blue screens of death" (BSOD), affecting companies in different sectors, including airlines, hospitals, media, banks, and others.

The outage was caused by a CrowdStrike's Falcon Sensor update,

Market Analysis: GBP/USD Trims Gains While USD/CAD Rallies
Forex Analysis

Market Analysis: GBP/USD Trims Gains While USD/CAD Rallies

GBP/USD started a pullback from the 1.3050 zone. USD/CAD is rising and might aim for more gains above the 1.3735 resistance.

Important Takeaways for GBP/USD and USD/CAD Analysis Today

  • The British Pound started a
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.