GBP/USD Eyes Fresh Increase While USD/CAD Visits Key Support
GBP/USD is showing positive signs above the 1.2200 support. USD/CAD corrected gains and now trading near a key support at 1.3720.
Important Takeaways for GBP/USD and USD/CAD
· The British Pound started a downside correction from the 1.2340 resistance zone.
· There was a break below a key bullish trend lien with support near 1.2280 on the hourly chart of GBP/USD.
· USD/CAD is correcting gains from the 1.3800 resistance zone.
· There was a break above a major bearish trend line with resistance near 1.3730 on the hourly chart.
GBP/USD Technical Analysis
The British Pound started a fresh decline from well above 1.2320 against the US Dollar. The GBP/USD pair gained bearish momentum after there was a break below the 1.2280 support.
The pair even broke the 1.2250 support level and the 50 hourly simple moving average. Besides, there was a break below a key bullish trend lien with support near 1.2280 on the hourly chart of GBP/USD.
Finally, there was a spike below the 1.2200 level. A low is formed near 1.2190 on FXOpen and the pair is now correcting losses. There was a move above the 1.2220 level. The pair climbed above the 23.6% Fib retracement level of the downward move from the 1.2343 swing high to 1.2190 low.
An immediate resistance is near the 1.2250 level. The first major resistance is near the 1.2265 level and the 50 hourly simple moving average. It is near the 50% Fib retracement level of the downward move from the 1.2343 swing high to 1.2190 low.
The next major resistance is near the 1.2300 level. Any more gains could lead the pair towards the 1.2340 barrier in the near term. If not, the pair could move down and might break the 1.2200 support. The next major support is near 1.2180.
If there is a downside break, GBP/USD might test the 1.2120 support. The next major support sits at 1.2050, where the bulls might take a stand.
USD/CAD Technical Analysis
The US Dollar gained pace for a move above the 1.3680 resistance zone against the Canadian Dollar. The USD/CAD pair struggled to clear the 1.3800 resistance zone and started a minor downside correction.
During the increase, there was a break above a major bearish trend line with resistance near 1.3730 on the hourly chart. A high was formed near 1.3804 and there was a downside correction. The pair declined below the 1.3750 level.
Besides, there was a move below the 38.2% Fib retracement level of the upward move from the 1.3630 swing low to 1.3804 high.
The pair tested the 1.3730 level and the broken trend line. On the downside, the pair is likely to find bids near 1.3715. It is near the 50% Fib retracement level of the upward move from the 1.3630 swing low to 1.3804 high.
The next major support is near the 1.3680 level. A downside break below 1.3680 support level could push the pair further lower. The next major support is near the 1.3650 zone, below which the pair could even test 1.3620.
On the upside, the pair is facing hurdles near 1.3750. The next major resistance is near the 1.3800 level, above which the pair could rise towards the 1.3840 level. Any more gains could send the pair towards the 1.3920 level.
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.