GBP/USD is struggling below the 1.3200 resistance. USD/CAD is rising, but it must clear 1.2530 to start a fresh increase in the near term.
Important Takeaways for GBP/USD and USD/CAD
· The British Pound started a fresh decline from the 1.3240 resistance zone.
· There is a key bearish trend line forming with resistance near 1.3140 on the hourly chart of GBP/USD.
· USD/CAD is rising and showing positive signs above the 1.2500 level.
· There is a major bullish trend line forming with support near 1.2505 on the hourly chart.
GBP/USD Technical Analysis
The British Pound started a strong decline from well above 1.3320 against the US Dollar. The GBP/USD pair gained bearish momentum after there was a break below the 1.3250 support.
The pair even broke the 1.3200 support level and the 50 hourly simple moving average. Finally, there was a move below the 1.3100 support. A low was formed near 1.3051 on FXOpen and the pair is now correcting losses.
The recent swing low was near 1.3086 and the pair is now consolidating. It is trading above the 23.6% Fib retracement level of the recent decline from the 1.3175 swing high to 1.3086 low.
An immediate resistance is near the 1.3130 level and the 50 hourly simple moving average. It is near the 50% Fib retracement level of the recent decline from the 1.3175 swing high to 1.3086 low. Besides, there is a key bearish trend line forming with resistance near 1.3140 on the hourly chart of GBP/USD.
The next major resistance is near the 1.3150 level. Any more gains could lead the pair towards the 1.3200 barrier in the near term.
If not, the pair could continue to move down and might even break the 1.3050 support. If there is a downside break, GBP/USD might test the 1.3000 support. The next major support sits at 1.2950.
USD/CAD Technical Analysis
The US Dollar formed a strong support base above the 1.2420 and 1.2430 levels against the Canadian Dollar. The USD/CAD pair started a decent increase and it broke the 1.2480 resistance zone.
The pair gained pace for a move above the 1.2500 level and the 50 hourly simple moving average. There was also a move above the 50% Fib retracement level of the key decline from the 1.2592 swing high to 1.2429 swing low.
On the upside, the pair is facing hurdles near 1.2530. It is near the 61.8% Fib retracement level of the key decline from the 1.2592 swing high to 1.2429 swing low.
The next major resistance is near the 1.2550 level, above which the pair could rise towards the 1.2620 level. On the downside, the pair is likely to find bids near 1.2510. The next major support is near the 1.2500 level.
Besides, there is a major bullish trend line forming with support near 1.2505 on the hourly chart. A downside break below 1.2500 support level could push the pair further lower.
The next major support is near the 1.2450 zone, below which the pair could even test 1.2420. Any more losses might call for a move to 1.2350.
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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