GBP/USD Could Extend Losses, USD/CAD Breaks Key Support

FXOpen

GBP/USD is showing bearish signs below the 1.2150 resistance. USD/CAD traded below the 1.3400 support, which might now act as a resistance.

Important Takeaways for GBP/USD and USD/CAD

· The British Pound started a fresh decline from the 1.2200 resistance zone.

· There is a key bearish trend line forming with resistance near 1.2065 on the hourly chart of GBP/USD.

· USD/CAD is struggling below the 1.3420 and 1.3400 support levels.

· There was a break below a connecting bullish trend line with support near 1.3380 on the hourly chart.

GBP/USD Technical Analysis

The British Pound started a fresh decline from well above 1.2400 against the US Dollar. The GBP/USD pair gained bearish momentum after there was a break below the 1.2250 support.

The pair even broke the 1.2150 support level and the 50 hourly simple moving average. The recent swing high was formed near 1.2193 on FXOpen before the price started another decline. There was a move below the 50% Fib retracement level of the upward move from the 1.1961 swing low to 1.2193 high.

GBP/USD Hourly Chart

It is now trading below 1.2050 and the 50 hourly simple moving average. There is also a key bearish trend line forming with resistance near 1.2065 on the hourly chart of GBP/USD.

An immediate resistance is near the 1.2060 level. The next major resistance is near the 1.2100 level and the 50 hourly simple moving average. Any more gains could lead the pair towards the 1.2200 barrier in the near term.

If not, the pair could continue to move down and might even break the 1.2040 support. The next major support is near 1.2000 or the 76.4% Fib retracement level of the upward move from the 1.1961 swing low to 1.2193 high.

If there is a downside break, GBP/USD might test the 1.1960 support. The next major support sits at 1.1850, where the bulls might take a stand.

USD/CAD Technical Analysis

The US Dollar attempted an upside break above the 1.3460 and 1.3470 resistance levels against the Canadian Dollar. The USD/CAD pair formed a short-term top at 1.3472 and recently declined.

There was a clear move below the 1.3420 support zone and the 50 hourly simple moving average. During the decline, there was a break below a connecting bullish trend line with support near 1.3380 on the hourly chart.

USD/CAD Hourly Chart

The pair tested the 1.3340 support and a low is formed near 1.3337. It is now correcting losses and trading above the 23.6% Fib retracement level of the recent decline from the 1.3472 swing high to 1.3337 swing low.

On the upside, the pair is facing hurdles near 1.3390. The next major resistance is near the 1.3400 level or the 50% Fib retracement level of the recent decline from the 1.3472 swing high to 1.3337 swing low, above which the pair could rise towards the 1.3470 level.

On the downside, the pair is likely to find bids near 1.3340. The next major support is near the 1.3285 level. A downside break below 1.3285 support level could push the pair further lower.

The next major support is near the 1.3240 zone, below which the pair could even test 1.3220. Any more losses might call for a move to 1.3150.

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.

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.

Latest from Forex Analysis

Market Analysis: GBP/USD Struggles While USD/CAD Aims Higher USD/JPY Technical Analysis: Yen Strengthens after Comments from Japanese Officials The American Currency Resumes Its Growth Australian Dollar Weakens amid Inflation News Exchange Rates Consolidate at the Beginning of the Week

Latest articles

Shares

5 Stocks To Consider in March 2024

Here we are, beginning the last month of the first quarter of 2024, which has passed by in somewhat of a flash. Perhaps the apparent speed at which the spring is approaching can be attributed to what appears to be

Commodities

WTI Oil Price Reaches 4-month High against the Backdrop of OPEC+ Decision

On Friday, the price of a barrel of WTI crude oil exceeded USD 80 per barrel due to the decision to continue the policy of reducing oil production by OPEC+ countries. Saudi Arabia said on Sunday it would extend oil

Financial Market News

Weekly Market Wrap With Gary Thomson: CAC 40, AUD, OIL, AMAZON

Get the latest scoop on the week's hottest headlines, all in one convenient video. Join Gary Thomson, the COO of  FXOpen UK, as he breaks down the most significant news reports and shares his expert insights. European Stock Markets on

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. 65.68% 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.