GBP/USD Starts Recovery While USD/CAD Faces Key Resistance

FXOpen

GBP/USD is correcting losses and trading above the 1.2000 zone. USD/CAD is struggling to clear the 1.3650 resistance zone.

Important Takeaways for GBP/USD and USD/CAD

· The British Pound started a decent recovery wave above the 1.2000 resistance zone.

· There was a break above a key bearish trend line with resistance near 1.1965 on the hourly chart of GBP/USD.

· USD/CAD is struggling below the 1.3640 and 1.3650 support levels.

· There is a major bearish trend line forming with resistance near 1.3640 on the hourly chart.

GBP/USD Technical Analysis

The British Pound started a fresh decline from well above 1.2120 against the US Dollar. The GBP/USD pair gained bearish momentum after there was a break below the 1.2050 support.

The pair even broke the 1.2000 support level and the 50 hourly simple moving average. The recent swing high was formed near 1.1925 on FXOpen before the price started an upside correction. There was a move above the 1.1980 level.

GBP/USD Hourly Chart

There was a break above a key bearish trend line with resistance near 1.1965 on the hourly chart of GBP/USD. Besides, there was a move above the 50% Fib retracement level of the downward move from the 1.2142 swing high to 1.1925 low.

An immediate resistance is near the 1.2050 level. It is near the 61.8% Fib retracement level of the downward move from the 1.2142 swing high to 1.1925 low.

The next major resistance is near the 1.2080 level. Any more gains could lead the pair towards the 1.2120 barrier in the near term. If not, the pair could move down and might break the 1.2000 support. The next major support is near 1.1980.

If there is a downside break, GBP/USD might test the 1.1920 support. The next major support sits at 1.1850, where the bulls might take a stand.

USD/CAD Technical Analysis

The US Dollar gained pace for a move above the 1.3600 resistance zone against the Canadian Dollar. The USD/CAD pair struggled to clear the 1.3650 resistance zone and started a minor downside correction.

A high was formed near 1.3643 and there was a downside correction. The pair declined below the 1.3610 level. Besides, there was a move below the 50% Fib retracement level of the upward move from the 1.3554 swing low to 1.3643 high.

The pair tested the 1.3590 level. It is near the 61.8% Fib retracement level of the upward move from the 1.3554 swing low to 1.3643 high.

On the downside, the pair is likely to find bids near 1.3590. The next major support is near the 1.3560 level. A downside break below 1.3560 support level could push the pair further lower. The next major support is near the 1.3520 zone, below which the pair could even test 1.3480. Any more losses might call for a move to 1.3420.

On the upside, the pair is facing hurdles near 1.3640. There is also a major bearish trend line forming with resistance near 1.3640 on the hourly chart.

The next major resistance is near the 1.3650 level, above which the pair could rise towards the 1.3700 level. Any more gains could send the pair towards the 1.3750 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.

Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Latest from Forex Analysis

US Dollar Shows Record Weekly Gain Since Mid-January USD Strengthens Sharply after Inflation News USD/JPY: Analysts Adjust Forecasts for the Strengthening of the Yen Major Currency Pairs Consolidating after the Release of US Inflation Data GBP/USD: Bulls Show Resilience amid Inflation and GDP News

Latest articles

Trader’s Tools

What Are the Analytical Forecasts for Natural Gas Prices From 2024 to 2029?

Exploring the dynamics of the natural gas market reveals intricate patterns shaped by a range of factors. This FXOpen article delves into analytical natural gas price predictions for 2024 and the next 5 years, offering insights into potential trends and

Forex Analysis

US Dollar Shows Record Weekly Gain Since Mid-January

The US dollar strengthened on Friday ahead of a series of highly anticipated central bank meetings next week, including the US Federal Reserve. The dollar rose 1.3% for the week, its biggest gain since mid-January, after a mixed batch

Shares

Tesla Stock Hits a Low Point as Musk Sues Openai - Is This Year a Total Write-Off?

Occasionally during the course of industrial progress, there is a maverick; a voice that is known for continual disruption and maintaining a high-profile position whilst engaging in such disruption. The figure of this decade is Elon Musk, a self-starter whose

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 65.68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.