GBP/USD gained momentum above the 1.3900 resistance and it even broke 1.4000. USD/CAD is declining and it traded below the 1.2650 support zone.
Important Takeaways for GBP/USD and USD/CAD
- The British Pound started a steady increase above the 1.3950 and 1.4000 resistance levels.
- There is a key rising channel forming with support near 1.4000 on the hourly chart of GBP/USD.
- USD/CAD started a steady decline below the 1.2700 and 1.2650 support levels.
- There is a major bearish trend line forming with resistance near 1.2710 on the hourly chart.
GBP/USD Technical Analysis
After forming a base above the 1.3800 level, the British Pound extended its increase against the US Dollar. The GBP/USD pair broke the 1.3900 resistance level to move further into a positive zone.
The bulls gained pace above the 1.3920 level and the 50 hourly simple moving average. As a result, there was a clear break above the key 1.4000 resistance level. The pair traded to a new yearly high at 1.4051 on FXOpen and it is currently correcting lower.
There was a break below the 1.4020 support level. The pair traded below the 23.6% Fib retracement level of the recent wave from the 1.3952 swing low to 1.4051 high.
On the downside, the first key support is near the 1.4000 area. There is also a key rising channel forming with support near 1.4000 on the hourly chart of GBP/USD. The trend line is close to the 50% Fib retracement level of the recent wave from the 1.3952 swing low to 1.4051 high.
If there is a break below 1.4010 and 1.4000, the pair could decline towards the 1.3980 support zone or the 50 hourly simple moving average. Any more losses might call for a test of 1.3920.
On the upside, an initial resistance is near the 1.4040 level. The main resistance is now near the 1.4050 zone, above which the pair is likely to accelerate higher towards the 1.4100 and 1.4120 levels.
USD/CAD Technical Analysis
The US Dollar failed to stay above the 1.2750 level against the Canadian Dollar. The USD/CAD pair started a steady decline below the 1.2700 and 1.2650 support levels.
It even traded below the 1.2620 support level and settled well below the 50 hourly simple moving average. A low is formed near 1.2580 and the pair is currently consolidating losses.
An initial resistance is near the 1.2630 level. It is close to the 38.2% Fib retracement level of the downward move from the 1.2713 high to 1.2580 low. The first major resistance for the bulls is seen near the 1.2650 level.
The 50% Fib retracement level of the downward move from the 1.2713 high to 1.2580 low is also near 1.2650. Moreover, there is a major bearish trend line forming with resistance near 1.2710 on the hourly chart.
To move into a positive zone, the pair must clear the 1.2650 resistance zone and then settle above 1.2700. On the downside, an initial support is near the 1.2600 level.
The next major support is near the 1.2580 level. Any more losses may possibly open the doors for a drop towards the 1.2550 support. The main support below 1.2550 is near the 1.2500 level, where the bulls are likely to take a stand.
Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.
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.