GBP/USD struggled to clear 1.1500 and corrected lower. USD/CAD is rising and might climb further above the 1.3800 resistance.
Important Takeaways for GBP/USD and USD/CAD
· The British Pound failed to gain strength for a move above the 1.1500 resistance.
· There is a key bearish trend line forming with resistance near 1.1130 on the hourly chart of GBP/USD.
· USD/CAD started a fresh increase above the 1.3600 resistance zone.
· There was a clear move above a major bearish trend line with resistance at 1.3650 on the hourly chart.
GBP/USD Technical Analysis
After forming a base above the 1.0850, the British Pound started a steady recovery wave against the US Dollar. GBP/USD gained pace for a move above the 1.1000 and 1.1200 resistance levels.
There was a move above the 1.1350 resistance and the 50 hourly simple moving average. However, the pair faced a strong resistance near the 1.1500 zone. A high was formed near 1.1496 on FXOpen and recently there was a downside correction.
There was a move below the 1.1350 and 1.1320 support levels. The pair declined below the 38.2% Fib retracement level of the upward move from the 1.0765 swing low to 1.1496 high.
It is now trading below the 1.1200 level and the 50 hourly simple moving average. On the downside, an initial support is near the 1.1020 area. It is near the 50% Fib retracement level of the upward move from the 1.0765 swing low to 1.1496 high.
The next major support is near the 1.0950 level. If there is a break below 1.0950, the pair could extend its decline. The next key support is near the 1.0850 level. Any more losses might call for a test of the 1.0750 support.
An immediate resistance is near the 1.1120 level. There is also a key bearish trend line forming with resistance near 1.1130 on the hourly chart of GBP/USD.
The next resistance is near the 1.1180 level. The main resistance is near the 1.1200 level. If there is an upside break above the 1.1200 zone, the pair could rise towards 1.1280. The next key resistance could be 1.1300, above which the pair could gain strength.
USD/CAD Technical Analysis
The US Dollar started a fresh increase above the 1.3580 resistance zone against the Canadian Dollar. USD/CAD gained pace for a move above the 1.3620 resistance zone.
The pair even climbed above the 1.3650 level and the 50 hourly simple moving average. There was a move above the 50% Fib retracement level of the downward move from the 1.3832 swing high to 1.3503 low.
There was a clear move above a major bearish trend line with resistance at 1.3650 on the hourly chart. It even broke the 1.3700 level and 1.3720 zone.
It is now facing resistance near the 1.3760 zone. It is near the 76.4% Fib retracement level of the downward move from the 1.3832 swing high to 1.3503 low. The next major resistance is near the 1.3800 level. A clear break above the 1.3800 level could open the doors for more gains.
The next major resistance is near the 1.3880 level, above which USD/CAD could rise steadily towards the main 1.3950 resistance zone.
An immediate support is near the 1.3700 level. The first major support is near the 1.3670 level. Any more losses may possibly open the doors for a drop towards the 1.3580 support zone in the near term.
This forecast represents FXOpen Companies opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Companies products and services or as financial advice.
Trade global forex with the best ECN broker of 2021*. Choose from 50+ forex markets 24/5. Open your FXOpen account now or learn more about making your money go further with FXOpen.
* FXOpen International, best ECN broker of 2021, according to the IAFT