GBP/USD Eyes Recovery While USD/CAD Is Sliding
GBP/USD could gain pace if it clears the 1.1900 resistance zone. USD/CAD is sliding and could extend losses below the 1.3000 level.
Important Takeaways for GBP/USD and USD/CAD
· The British Pound is attempting an upside correction from the 1.1800 support zone.
· There is a key bearish trend line forming with resistance near 1.1900 on the hourly chart of GBP/USD.
· USD/CAD started a fresh decline from the 1.3220 resistance zone.
· There was a break below a connecting bullish trend line with support near 1.3070 on the hourly chart.
GBP/USD Technical Analysis
After facing sellers near 1.2055, the British Pound started a fresh decline against the US Dollar. GBP/USD declined heavily below the 1.2000 support zone.
There was a move below the 1.1900 support zone and the 50 hourly simple moving average. The pair traded as low as 1.1761 and is currently correcting higher. There was a clear move above the 1.1850 resistance zone.
The pair climbed above the 50% Fib retracement level of the downward move from the 1.1967 swing high to 1.1761 low. An immediate resistance is near the 1.1900 level.
There is also a key bearish trend line forming with resistance near 1.1900 on the hourly chart of GBP/USD. The next key resistance is near the 1.1920 level. It is near the 76.4% Fib retracement level of the downward move from the 1.1967 swing high to 1.1761 low.
If there is an upside break above the 1.1920 zone, the pair could rise towards 1.2000. The next key resistance could be 1.2050, above which the pair could gain strength.
On the downside, an initial support is near the 1.1860 area. The first major support is near the 1.1840 level. If there is a break below 1.1840, the pair could extend its decline. The next key support is near the 1.1760 level. Any more losses might call for a test of the 1.1700 support.
USD/CAD Technical Analysis
The US Dollar started a fresh decline from the 1.3220 zone against the Canadian Dollar. USD/CAD gained pace for a move below the 1.3120 support zone.
There was a break below a connecting bullish trend line with support near 1.3070 on the hourly chart. Besides, there was a move below the 50% Fib retracement level of the upward move from the 1.2936 swing low to 1.3223 high.
The pair settled below the 1.3050 level and the 50 hourly simple moving average. It is now trading below the 61.8% Fib retracement level of the upward move from the 1.2936 swing low to 1.3223 high.
An immediate support is near the 1.3000 level. The first major support is near the 1.2950 level. Any more losses may possibly open the doors for a drop towards the 1.2850 support.
On the upside, the pair is facing resistance near 1.3025. The next major resistance is near the 1.3070 level or the 50 hourly simple moving average. A clear break above the 1.3070 level could open the doors for more gains.
The next major resistance is near the 1.3120 level, above which USD/CAD could rise steadily towards the main 1.3220 resistance zone.
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.