GBP/USD and USD/CAD: More Upsides Possible

Aayush Jindal -

GBP/USD remained stable above the 1.3000 pivot level, but it is struggling to clear 1.3135. USD/CAD is currently rising, but it is also facing a major hurdle near 1.3280.

Important Takeaways for GBP/USD and USD/CAD

  • The British Pound is forming a strong support base above the 1.3000 and 1.3020 levels.
  • There is a key bullish trend line forming with support near 1.3085 on the hourly chart of GBP/USD.
  • USD/CAD started a decent recovery wave after forming a swing low near 1.3191.
  • There is a major bearish trend line forming with resistance near 1.3280 on the hourly chart.

GBP/USD Technical Analysis

In the past few sessions, the British Pound remained stable above the 1.3000 level against the US Dollar. The GBP/USD pair seems to be forming a strong support base above the 1.3000 and 1.3020 levels.

Recently, the pair traded above the 1.3100 resistance zone and the 50 hourly simple moving average. It traded as high as 1.3171 on FXOpen and the pair is currently correcting lower.

There was a break below the 1.3120 support level. The pair even spiked below the 50% Fib retracement level of the upward move from the 1.3045 low to 1.3141 high. However, the pair found support near the 1.3080 area and 50 hourly simple moving average.

There is also a key bullish trend line forming with support near 1.3085 on the hourly chart of GBP/USD. Moreover, the pair is stable above the 61.8% Fib retracement level of the upward move from the 1.3045 low to 1.3141 high.

If there is a downside break below the trend line support and the 50 hourly SMA, there could be an extended decline. The next support is near the 1.3045 level, below which the pair could revisit the main 1.3020 and 1.3000 support levels.

Conversely, GBP/USD might start a fresh increase above 1.3120. The main hurdle is near 1.3135 and 1.3140, above which the bulls are likely to aim a test of 1.3200.

USD/CAD Technical Analysis

The US Dollar started a major decline after it failed to clear the 1.3400 resistance zone against the Canadian Dollar. The USD/CAD pair declined below the key 1.3300 and 1.3280 support levels to move into a short-term bearish zone.

It even spiked below 1.3200 and traded as low as 1.3191. Recently, the pair started a fresh increase above the 1.3200 level. It climbed above the 23.6% Fib retracement level of the downward move from the 1.3347 high to 1.3191 low.

However, the pair is currently facing hurdles near 1.3270 and 1.3280. There is also a major bearish trend line forming with resistance near 1.3280 on the hourly chart.

The trend line coincides with the 50% Fib retracement level of the downward move from the 1.3347 high to 1.3191 low. Therefore, a break above the 1.3280 resistance zone could open the doors for more upsides.

The next key resistance is near the 1.3340 and 1.3350 levels, above which the pair could visit the 1.3400 level. Conversely, the USD/CAD pair might break the 1.3235 support zone and the 50 hourly SMA.

The next support is near the 1.3200 and 1.3188 levels. Any further losses may perhaps lead USD/CAD towards the 1.3160 support level in the near term.