GBP/USD Rising While USD/CAD Is Correcting Gains

Aayush Jindal -

GBP/USD is trading in a nice uptrend above the 1.2900 resistance area. Conversely, USD/CAD struggled to clear the key 1.3270 resistance area and it is currently correcting gains.

Important Takeaways for GBP/USD and USD/CAD

  • The British Pound is gaining bullish momentum above the 1.2900 resistance level.
  • There is a key bullish trend line forming with support near 1.2895 on the hourly chart of GBP/USD.
  • USD/CAD is currently correcting lower below the 1.3240 support area.
  • There was a break below a major bullish trend line with support near 1.3255 on the hourly chart.

GBP/USD Technical Analysis

This past week, the British Pound found support near the 1.2815 and 1.2820 levels against the US Dollar. As a result, the GBP/USD pair started a fresh upward move and climbed above the key 1.2860 resistance area.

The pair gained pace above the 1.2880 resistance and the 50 hourly simple moving average. Finally, the pair climbed above the 1.2900 resistance level and even climbed above 1.2920 on FXOpen.

During the rise, there was a break above a major bearish trend line with resistance near 1.2885 on the hourly chart of GBP/USD. Moreover, the pair climbed above the 1.236 Fib extension level of the downward move from the 1.2897 high to 1.2815 low.

It opened the doors for more gains and the pair is likely to rise further towards the 1.2950 and 1.2960 resistance levels. The first key resistance is near the 1.2950 level.

Besides, the 1.618 Fib extension level of the downward move from the 1.2897 high to 1.2815 low is also near the 1.2948 level. Therefore, a clear break above 1.2950 and 1.2960 could push the price towards the 1.3000 resistance.

Conversely, if there is a downside correction, the pair might find support near the 1.2910 and 1.2900 levels. Besides, there is a key bullish trend line forming with support near 1.2895 on the same chart. Only a close below 1.2880 might push GBP/USD back towards 1.2820.

USD/CAD Technical Analysis

The US Dollar made a couple of attempts to surpass the 1.3270 resistance area against the Canadian Dollar. However, the USD/CAD pair failed to continue above 1.3270 and started a fresh decrease.

It broke a couple of important supports near the 1.3250 level. Additionally, there was a break below a major bullish trend line with support near 1.3255 on the hourly chart.

The pair even broke the 1.3240 support and the 50 hourly simple moving average. It is now trading near the last swing low at 1.3218. An immediate support is near the 1.3210 level.

Besides, the 1.236 Fib extension level of the upward move from the 1.3218 low to 1.3251 high is also near the 1.3211 level. If there is a downside break below the 1.3210 support, the pair could decline further towards the 1.3200 support.

The 1.3200 support holds a lot of importance since it is close to the 1.618 Fib extension level of the upward move from the 1.3218 low to 1.3251 high.

Therefore, a downside break below the 1.3200 support area might start a major decline. The next major support is near the 1.3160 level.

Conversely, if there is an upward move, USD/CAD might face resistance near the 1.3240 and 1.3250 levels. The main resistance is near 1.3250 since it coincides with the 50 hourly SMA.