Market Analysis: GBP/USD Turns Red While USD/CAD Rallies

FXOpen

GBP/USD declined below the 1.2670 support 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 fresh decline from the 1.2700 resistance zone.

· There is a key bearish trend line forming with resistance at 1.2640 on the hourly chart of GBP/USD at FXOpen.

· USD/CAD is showing positive signs above the 1.3675 support zone.

· There is a major bullish trend line forming with support at 1.3705 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 1.2700 zone. The British Pound traded below the 1.2670 support to move into further a bearish zone against the US Dollar.

The pair even traded below 1.2640 and the 50-hour simple moving average. Finally, the bulls appeared near the 1.2625 level. A low was formed at 1.2621 and the pair is now consolidating losses below the 23.6% Fib retracement level of the downward move from the 1.2670 swing high to the 1.2621 low.

Immediate resistance on the upside is near a key bearish trend line at 1.2645. The trend line is close to the 50% Fib retracement level of the downward move from the 1.2670 swing high to the 1.2621 low.

The first major resistance is near the 1.2655 zone. The main hurdle sits at 1.2670. A close above the 1.2670 resistance might spark a steady upward move. The next major resistance is near the 1.2700 zone. Any more gains could lead the pair toward the 1.2740 resistance in the near term.

Initial support on the GBP/USD chart sits at 1.2625. The next major support sits at 1.2600, below which there is a risk of another sharp decline. In the stated case, the pair could drop toward 1.2550.

USD/CAD Technical Analysis

On the hourly chart of USD/CAD at FXOpen, the pair formed a strong support base above the 1.3640 level. The US Dollar started a fresh increase above the 1.3675 resistance against the Canadian Dollar.

The bulls pushed the pair above the 1.3685 and 1.3700 levels. The pair cleared the 50-hour simple moving average and climbed above 1.3720. A high was formed at 1.3734 and the pair is now consolidating gains.

Initial support is near a major bullish trend line at 1.3705. The trend line is close to the 23.6% Fib retracement level of the upward move from the 1.3621 swing low to the 1.3734 high.

The next major support is near 1.3675 or the 50% Fib retracement level of the upward move from the 1.3621 swing low to the 1.3734 high on the same USD/CAD chart. The main support sits near the 1.3640 zone.

A downside break below the 1.3640 level could push the pair further lower. The next major support is near the 1.3620 support zone, below which the pair might visit 1.3550.

If there is another increase, the pair might face resistance near the 1.3735 level. A clear upside break above 1.3735 could start another steady increase. The next major resistance is the 1.3750 level.

A close above the 1.3750 level might send the pair toward the 1.3800 level. Any more gains could open the doors for a test of the 1.3850 level.

Read analytical USD/CAD price forecasts for 2024 and beyond.

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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.

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