GBP/USD and USD/CAD Eyeing Upside Break

FXOpen

GBP/USD struggled to settle above 1.2880 and declined recently. USD/CAD is currently basing near the 1.3200 for the next upward move in the short term.

Important Takeaways for GBP/USD and USD/CAD

  • The British Pound is placed nicely above the 1.2770 and 1.2780 support levels.
  • There is a short term breakout pattern forming with resistance near the 1.2825 level on the hourly chart of GBP/USD.
  • USD/CAD is holding the 1.3180 and 1.3200 support levels, with positive signs.
  • The pair is approaching the next break either above 1.3240 or below 1.3180.

GBP/USD Technical Analysis

After forming a support base near 1.2770, the British Pound found started a nice upward move against the US Dollar. The GBP/USD pair traded above the 1.2850 and 1.2870 resistance levels.

However, the pair failed to surpass the 1.2930 resistance level and topped near the 1.2927 level on FXOpen. The pair dropped below 1.2900 and it seems like buyers failed to hold gains above the 1.2880 level.

GBP/USD Technical Analysis Chart

There was a sharp downside move and the pair retested the 1.2800 support area. A new intraday low was formed at 1.2790 and the pair is currently consolidating losses. An initial resistance is near the 23.6% Fib retracement level of the recent decline from the 1.2927 high to 1.2796 low.

More importantly, there is a short term breakout pattern forming with resistance near the 1.2825 level on the hourly chart. The trend line resistance is near the 50 hourly simple moving average at 1.2840.

Therefore, a break above the 1.2825 and 1.2840 levels could open the doors for a decent upward move. The next resistance is near 1.2865 and the 50% Fib retracement level of the recent decline from the 1.2927 high to 1.2796 low.

On the flip side, if there is a downside break below 1.2800, the pair could retest the key 1.2770 support area. Below 1.2770, the pair may decline sharply towards the 1.2720 support area in the near term.

USD/CAD Technical Analysis

The US Dollar followed a solid bullish path this past week and traded above the 1.3200 and 1.3250 resistance levels against the Canadian Dollar. The USD/CAD pair even gained pace above the 1.3300 level and formed a high near 1.3318.

Later, there was a sharp downside reaction and the pair declined below 1.3300 and 1.3250. There was even a close below the 1.3250 level and the 50 hourly simple moving average. The pair traded as low as 1.3182 and later started an upside correction.

USD/CAD Technical Analysis Chart

It moved above the 1.3220 level and the 23.6% Fib retracement level of the recent decline from the 1.3317 high to 1.3182 low. However, the upward move was capped by the 1.3250 resistance and a connecting major bearish trend line with current resistance at 1.3240 on the hourly chart.

Moreover, there was no break above the 50% Fib retracement level of the recent decline from the 1.3317 high to 1.3182 low. At the moment, the pair is trading near the 1.3200 level and it is likely approaching the next break either above 1.3240 or below 1.3180.

A break above 1.3240 could open the doors for more gains in USD/CAD above the 1.3250 and 1.3280 levels. On the downside, the 1.3180 support is very important, below which the pair may perhaps decline towards the 1.3120 support area.

Trade global forex with the Innovative Broker of 2022*. Choose from 50+ forex markets 24/5. Open your FXOpen account now or learn more about trading forex with FXOpen.

* FXOpen International, Innovative Broker of 2022, according to the IAFT

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.

Latest from Forex Analysis

Market Analysis: US Dollar On the Rise Despite Weak PMI Data Market Analysis: GBP/USD Nosedives While USD/CAD Aims Higher EUR/USD Analysis: Key Support Zone Resists Selling Pressure USD/JPY Analysis: Rate Reaches Maximum of the Year Market Analysis: EUR/USD, GBP/USD, and USD/JPY

Latest articles

Forex Analysis

Market Analysis: US Dollar On the Rise Despite Weak PMI Data

EUR/USDThe euro fell against the US dollar on Friday as economic data showed a contraction in economic activity, which could prompt European Central Bank hawks to soften their policy stance. Preliminary data indicates a contraction in economic activity in

Financial Market News

Economic calendar: NASDAQ 100 May Keep Falling, High Volatility in Oil Markets, Potential Appreciation of the US Dollar

The US, Japan and the UK may have kept interest rates on hold last week, but with the Federal Reserve indicating that rates will stay higher for longer, there is turmoil in the equity markets. The NASDAQ 100 fell 500

Financial Market News
Indices

Financial Markets Waking Up after a Turbulent Week: Important News

The main event of last week was information from the Fed. Jerome Powell once again demonstrated his determination to maintain a tough political stance, which caused: → increase in bond yields. Yields on 10-year securities reached their highest since 2009; → the

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.