GBP/USD Recovers Ground, USD/CAD is Facing Uphill Task

Aayush Jindal -

GBP/USD started a decent recovery wave from the 1.3750 support zone. USD/CAD must clear the 1.2500 resistance zone to continue higher in the near term.

Important Takeaways for GBP/USD and USD/CAD

  • The British Pound started a fresh increase from the 1.3750 support zone.
  • There was a break above a key bearish trend line with resistance near 1.3775 on the hourly chart of GBP/USD.
  • USD/CAD gained bullish momentum above the 1.2450 and 1.2500 resistance levels.
  • There is a major bearish trend line forming with resistance near 1.2480 on the hourly chart.

GBP/USD Technical Analysis

The British Pound formed a strong support base above the 1.3750 level against the US Dollar. As a result, the GBP/USD pair started a decent increase and it broke many hurdles near 1.3800.

There was a break above a key bearish trend line with resistance near 1.3775 on the hourly chart of GBP/USD. The pair gained pace above the 1.3820 level and the 50 hourly simple moving average.

The pair even spiked above the 1.3900 resistance zone. A high is formed near 1.3909 on FXOpen and the pair is now consolidating gains. An initial support on the downside is near the 1.3875 level. It is near the 23.6% Fib retracement level of the upward move from the 1.3755 swing low to 1.3909 high.

The main support is now forming near the 1.3830 level. It is close to the 50% Fib retracement level of the upward move from the 1.3755 swing low to 1.3909 high.

On the upside, the pair must settle above the 1.3900 level. The next major resistance is near the 1.3940 level. Any more gains could lead the pair towards the 1.4000 barrier in the near term. An intermediate resistance could be 1.3980.

USD/CAD Technical Analysis

The US Dollar formed a strong support base above the 1.2300 and 1.2310 levels against the Canadian Dollar. The USD/CAD pair started a major increase and it broke the 1.2400 resistance zone.

The pair gained pace for a move above the 1.2500 level and the 50 hourly simple moving average. Finally, there was a break above the 1.2550 level and the pair traded as high as 1.2590.

Recently, there was a downside correction below the 1.3500 support zone. The pair even spiked below the 50% Fib retracement level of the upward move from the 1.2302 low to 1.2590 high.

It is now consolidating above the 1.2440 support zone. On the upside, the pair is facing hurdles near 1.2480 and 1.2500. There is also a major bearish trend line forming with resistance near 1.2480 on the hourly chart.

An upside break above the 1.3500 resistance zone could open the doors for a fresh increase. The next major resistance is near the 1.3550 level, above which the pair could rise towards the 1.3620 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.