GBP/USD started a steady increase and surpassed the 1.3600 resistance. USD/CAD is holding gains above 1.2700 and eyeing more gains.
Important Takeaways for GBP/USD and USD/CAD
· The British Pound started a fresh increase from the 1.3500 support zone.
· There is a key bullish trend line forming with support near 1.3590 on the hourly chart of GBP/USD.
· USD/CAD seems to be facing resistance near the 1.2760 and 1.2780 resistance levels.
· There is a major bearish trend line forming with resistance near 1.2755 on the hourly chart.
GBP/USD Technical Analysis
The British Pound formed a strong support base above the 1.3500 level against the US Dollar. As a result, the GBP/USD pair started a decent increase and it broke many hurdles near 1.3550.
The pair gained pace above the 1.3580 level and the 50 hourly simple moving average. The pair even spiked above the 1.3600 resistance zone. A high is formed near 1.3642 on FXOpen and the pair is now consolidating gains.
There was a move below the 23.6% Fib retracement level of the upward move from the 1.3486 swing low to 1.3642 high. An initial support on the downside is near the 1.3605 level and the 50 hourly simple moving average.
The main support is now forming near the 1.3590 level. There is also a key bullish trend line forming with support near 1.3590 on the hourly chart of GBP/USD.
The trend line is also above the 50% Fib retracement level of the upward move from the 1.3486 swing low to 1.3642 high. If there is a downside break, GBP/USD might test the 1.3520 support.
On the upside, the pair must settle above the 1.3630 level. The next major resistance is near the 1.3650 level. Any more gains could lead the pair towards the 1.3800 barrier in the near term. An intermediate resistance could be 1.3740.
USD/CAD Technical Analysis
The US Dollar formed a strong support base above the 1.2675 and 1.2680 levels against the Canadian Dollar. The USD/CAD pair started a decent increase and it broke the 1.2720 resistance zone.
The pair gained pace for a move above the 1.2750 level and the 50 hourly simple moving average. However, the pair failed to continue higher above the 1.2760 level. A high is formed near 1.2761 and the pair is now correcting gains.
It is testing the 38.2% Fib retracement level of the upward move from the 1.2673 low to 1.2761 high. On the downside, the pair is likely to find bids near 1.2720.
The stated support is near the 50% Fib retracement level of the upward move from the 1.2673 low to 1.2761 high. The next major support is near the 1.2700 level. A downside break below 1.2700 support level could push the pair to 1.2675. Any more losses might call for a move to 1.2640.
On the upside, the pair is facing hurdles near 1.2750 and 1.2760. There is a major bearish trend line forming with resistance near 1.2755 on the hourly chart.
An upside break above the 1.3760 resistance zone could open the doors for a fresh increase. The next major resistance is near the 1.2780 level, above which the pair could rise towards the 1.2850 level.
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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