GBP/USD Nosedives While USD/CAD Gains Strength

GBP/USD accelerated lower below the 1.1850 and 1.1750 support levels. USD/CAD is surging and could continue to rise above the 1.3075 resistance zone.

Important Takeaways for GBP/USD and USD/CAD

· The British Pound started a major decline below the 1.1850 support zone.

· There is a key bearish trend line forming with resistance near 1.1830 on the hourly chart of GBP/USD.

· USD/CAD started a fresh increase above the 1.3000 resistance zone.

· There was a break above a major bearish trend line with resistance near the 1.2970 on the hourly chart.

GBP/USD Technical Analysis

After a strong rejection near 1.2000, the British Pound started a fresh decline against the US Dollar. GBP/USD declined heavily below the 1.1920 support zone.

There was a move below the 1.1850 support zone and the 50 hourly simple moving average. The pair even traded below the 1.1750 support zone and formed a low near 1.1655. It is now consolidating losses above the 1.1650 level.

An immediate resistance is near the 1.1710 level. It is near the 23.6% Fib retracement level of the downward move from the 1.1900 swing high to 1.1655 low.

The next key resistance is near the 1.1780 level. It is near the 50% Fib retracement level of the downward move from the 1.1900 swing high to 1.1655 low. The main resistance is now forming near the 1.1820 zone.

Besides, there is a key bearish trend line forming with resistance near 1.1830 on the hourly chart of GBP/USD. If there is an upside break above the 1.1820 zone, the pair could rise towards 1.1900. The next key resistance could be 1.1950, above which the pair could gain strength.

On the downside, an initial support is near the 1.1650 area. The first major support is near the 1.1620 level. If there is a break below 1.1620, the pair could extend its decline. The next key support is near the 1.1550 level. Any more losses might call for a test of the 1.1500 support.

USD/CAD Technical Analysis

The US Dollar started a fresh increase above the 1.2950 resistance zone against the Canadian Dollar. USD/CAD gained pace for a move above the 1.3000 resistance zone.

There was a break above a major bearish trend line with resistance near the 1.2970 on the hourly chart. The pair even climbed above the 1.3020 level and the 50 hourly simple moving average. It traded as high as 1.3073 and is currently consolidating gains.

An immediate support is near the 1.3035 level. It is near the 23.6% Fib retracement level of the upward move from the 1.2904 swing low to 1.3073 high.

The first major support is near the 1.3000 level. Any more losses may possibly open the doors for a drop towards the 50% Fib retracement level of the upward move from the 1.2904 swing low to 1.3073 high in the near term.

On the upside, the pair is facing resistance near 1.3075. The next major resistance is near the 1.3120 level. A clear break above the 1.3120 level could open the doors for more gains.

The next major resistance is near the 1.3200 level, above which USD/CAD could rise steadily towards the main 1.3250 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.

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