GBP/USD started a fresh decline below the 1.2560 support. USD/CAD is also moving lower and might extend losses below the 1.2550 support.
Important Takeaways for GBP/USD and USD/CAD
· The British Pound started a fresh decline from the 1.2655 resistance zone.
· There is a major bearish trend line forming with resistance near 1.2540 on the hourly chart of GBP/USD.
· USD/CAD also started a fresh increase from well below the 1.2800 zone.
· There is a key bearish trend line forming with resistance near 1.2610 on the hourly chart.
GBP/USD Technical Analysis
After struggling to clear the 1.2655 resistance zone, the British Pound found started a fresh decline against the US Dollar. GBP/USD traded below the 1.2550 support level to move into a bearish zone.
The bears gained strength for a move below the 1.2500 level and the 50 hourly simple moving average. The pair even spiked below the 1.2480 level and traded as low as 1.2477 on FXOpen. The pair is now consolidating losses above the 1.2480 level.
An immediate resistance is near the 1.2505 level. It is near the 23.6% Fib retracement level of the downward move from the 1.2589 swing high to 1.2477 low.
The next key resistance is near the 1.2535 level. It is near the 50% Fib retracement level of the downward move from the 1.2589 swing high to 1.2477 low. There is also a major bearish trend line forming with resistance near 1.2540 on the hourly chart of GBP/USD.
If there is an upside break above the 1.2540 zone, the pair could rise towards 1.2600. The next key resistance could be 1.2655, above which the pair could gain strength.
On the downside, an initial support is near the 1.2475 area. The first major support is near the 1.2450 level. If there is a break below 1.2450, the pair could extend its decline. The next key support is near the 1.2400 level. Any more losses might call for a test of the 1.2320 support.
USD/CAD Technical Analysis
The US Dollar started a fresh decline from the 1.2840 zone against the Canadian Dollar. USD/CAD gained pace for a move below the 1.2700 support zone.
The pair settled below the 1.2650 level and the 50 hourly simple moving average. A low is formed near 1.2551 and the pair is now recovering losses. There was a move above the 1.2580 level. The pair climbed above the 23.6% Fib retracement level of the downward move from the 1.2685 swing high to 1.2551 low.
On the upside, the pair is facing resistance near 1.2600 or the 38.2% Fib retracement level of the downward move from the 1.2685 swing high to 1.2551 low.
The next major resistance is near the 1.2610 level. There is also a key bearish trend line forming with resistance near 1.2610 on the hourly chart. A clear break above the 1.2610 level could open the doors for more gains. The next major resistance is near the 1.2650 level.
An immediate support is near the 1.2565 level. The first major support is near the 1.2550 level. Any more losses may possibly open the doors for a drop towards the 1.2480 support.
This forecast represents FXOpen Markets Limited opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Markets Limited products and services or as financial advice.
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