GBP/USD could gain pace if it clears the 1.2100 resistance zone. USD/CAD is surging and could continue to rise above the 1.3000 resistance zone.
Important Takeaways for GBP/USD and USD/CAD
· The British Pound is attempting an upside break above the 1.2100 resistance zone.
· There is a key bearish trend line forming with resistance near 1.2100 on the hourly chart of GBP/USD.
· USD/CAD started a fresh increase above the 1.2920 resistance zone.
· There was a break above a declining channel with resistance near the 1.2865 on the hourly chart.
GBP/USD Technical Analysis
After facing sellers near 1.2280, the British Pound started a fresh decline against the US Dollar. GBP/USD declined heavily below the 1.2200 support zone.
There was a move below the 1.2100 support zone and the 50 hourly simple moving average. The pair traded as low as 1.2004 and is currently correcting higher. There was a clear move above the 1.2030 resistance zone.
The pair climbed above the 23.6% Fib retracement level of the downward move from the 1.2168 swing high to 1.2004 low. An immediate resistance is near the 1.2080 level.
There is also a key bearish trend line forming with resistance near 1.2100 on the hourly chart of GBP/USD. The next key resistance is near the 1.2105 level. It is near the 50% Fib retracement level of the downward move from the 1.2168 swing high to 1.2004 low.
If there is an upside break above the 1.2100 zone, the pair could rise towards 1.2150. The next key resistance could be 1.2200, above which the pair could gain strength.
On the downside, an initial support is near the 1.2040 area. The first major support is near the 1.2000 level. If there is a break below 1.2000, the pair could extend its decline. The next key support is near the 1.1960 level. Any more losses might call for a test of the 1.1850 support.
USD/CAD Technical Analysis
The US Dollar started a fresh increase above the 1.2830 resistance zone against the Canadian Dollar. USD/CAD gained pace for a move above the 1.2920 support zone.
There was a break above a declining channel with resistance near the 1.2865 on the hourly chart. The pair even climbed above the 1.2950 level and the 50 hourly simple moving average. It traded as high as 1.2984 and is currently consolidating gains.
There was a move below the 23.6% Fib retracement level of the upward move from the 1.2818 swing low to 1.2984 high.
An immediate support is near the 1.2920 level. The first major support is near the 1.2900 level. It is near the 50% Fib retracement level of the upward move from the 1.2818 swing low to 1.2984 high. 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 1.2960. The next major resistance is near the 1.3000 level. A clear break above the 1.3000 level could open the doors for more gains.
The next major resistance is near the 1.3050 level, above which USD/CAD could rise steadily towards the main 1.3120 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.
Trade global forex with the Innovative Broker of 2022*. 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, Innovative Broker of 2022, according to the IAFT
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.