GBP/USD Gains Momentum, USD/CAD Could Extend Losses
GBP/USD started a major increase above the 1.3500 resistance zone. USD/CAD declined below 1.2700 and remains at a risk of more downsides.
Important Takeaways for GBP/USD and USD/CAD
· The British Pound started a fresh increase from the 1.3320 support zone.
· There is a key bullish trend line forming with support near 1.3545 on the hourly chart of GBP/USD.
· USD/CAD started a fresh decline from well above the 1.2800 pivot level.
· There was a break below a major bullish trend line with support near 1.2730 on the hourly chart.
GBP/USD Technical Analysis
After a major decline, the British Pound found support above 1.3320 against the US Dollar. GBP/USD started a fresh upward wave above the 1.3500 level.
The bulls gained strength and pushed the pair above the 1.3550 level. A high was formed near 1.3597 on FXOpen and the pair is now consolidating gains. It is now trading well above the 1.3550 level and the 50 hourly simple moving average.
On the downside, the first support is near the 1.3570 area. It is near the 23.6% Fib retracement level of the upward move from the 1.3490 swing low to 1.3597 high.
The first major support is near the 1.3550 level. There is also a key bullish trend line forming with support near 1.3545 on the hourly chart of GBP/USD. It is close to the 50% Fib retracement level of the upward move from the 1.3490 swing low to 1.3597 high.
If there is a break below 1.3545, the pair could extend its decline. The next key support is near the 1.3500 level. Any more losses might call for a test of the 1.3450 support.
An immediate resistance is near the 1.3600 level. The first major resistance is near the 1.3620 level. If there is an upside break above the 1.3620 zone, the pair could rise towards 1.3700. The next key resistance could be 1.3750, above which the pair could gain strength.
USD/CAD Technical Analysis
The US Dollar started a fresh decline from the 1.2820 zone against the Canadian Dollar. USD/CAD gained pace for a move below the 1.2780 support zone.
The pair settled below the 1.2750 level and the 50 hourly simple moving average. There was a break below a major bullish trend line with support near 1.2730 on the hourly chart. The pair traded as low as 1.2631 and currently consolidating losses.
An initial support on the downside is near the 1.2630 level. The first major support is near the 1.2620 level. Any more losses may possibly open the doors for a drop towards the 1.2550 support. The next major support is near the 1.2500 level.
An immediate hurdle on the upside is near the 1.2675 level. It is near the 23.6% Fib retracement level of the downward move from the 1.2814 high to 1.2631 low.
The next major resistance is near the 1.2720 level. It is close to the 50% Fib retracement level of the downward move from the 1.2814 high to 1.2631 low. A clear break above the 1.2720 level could open the doors for more gains. The next major resistance is near the 1.2800 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.