GBP/USD Near Crucial Juncture, USD/CAD Is Diving

Aayush Jindal -

GBP/USD started a fresh increase above 1.2820, but it is facing a strong resistance near 1.2980 and 1.3000. USD/CAD is currently declining and trading well below 1.3320.

Important Takeaways for GBP/USD and USD/CAD

  • The British Pound is attempting an upside break above the 1.2980 and 1.3000 resistance levels.
  • There is a key bullish trend line forming with support near 1.2905 on the hourly chart of GBP/USD.
  • USD/CAD started a fresh decline from well above the 1.3350 support zone.
  • There was a break below a connecting bullish trend line with support at 1.3305 on the hourly chart.

GBP/USD Technical Analysis

In the past few days, the British Pound started a steady increase from the 1.2700 support zone against the US Dollar. The GBP/USD pair broke many hurdles near 1.2820 to move into a positive zone.

There was also a close above the 1.2900 level and the 50 hourly simple moving average. However, the pair is now facing a strong resistance near the 1.2980 and 1.3000 levels. The recent low was formed near 1.2837 on FXOpen, and the pair is currently moving higher.

There was a break above the 1.2920 resistance level. The pair surpassed the 50% Fib retracement level of the downward move from the 1.2978 high to 1.2837 low.

The pair is now trading near the 1.2950 resistance level, and the 76.4% Fib retracement level of the downward move from the 1.2978 high to 1.2837 low. The main hurdle is still near the 1.3000 level, above which the pair is likely to accelerate higher in the near term.

On the downside, the first key support is near the 1.2900 area and the 50 hourly simple moving average. There is also a key bullish trend line forming with support near 1.2905 on the hourly chart of GBP/USD.

A clear break below the trend line support might start a steady decline towards the 1.2840 support zone. The next major support is near the 1.2780 level.

USD/CAD Technical Analysis

The US Dollar failed to clear the 1.3420 resistance level on many occasions against the Canadian Dollar. As a result, the USD/CAD pair started a steady decline below the 1.3350 support level.

There was a break below the 1.3320 support level and 50 hourly simple moving average. Moreover, there was a break below a connecting bullish trend line with support at 1.3305 on the hourly chart.

The pair even broke 1.3300 and traded as low as 1.3267. Recently, it corrected higher above 1.3300, but it failed to continue higher above 1.3330. A high is formed near 1.3331 and the pair is currently declining.

It broke the 50% Fib retracement level of the recent increase from the 1.3267 low to 1.3331 high. The pair is now trading below the 1.3280 support, and the 50 hourly simple moving average.

It is also trading below the 76.4% Fib retracement level of the recent increase from the 1.3267 low to 1.3331 high. Therefore, there are high chances of more downsides below the 1.3267 low. The next major support is near the 1.3250 level, below which the bears might aim a test of 1.3200.

Conversely, USD/CAD might start another upside correction above 1.3300. However, it must settle above 1.3320 and 1.3300 to continue higher in the near term.