GBP/USD Struggles Below 1.3900, USD/CAD Could Extend Gains

Aayush Jindal -

GBP/USD started a fresh decline after it failed to surpass the 1.4000 resistance. USD/CAD is rising and it is showing a lot of positive signs above the 1.2450 level.

Important Takeaways for GBP/USD and USD/CAD

  • The British Pound started a fresh decline after it was rejected near the 1.4000 area.
  • There was a break below a major bullish trend line with support near 1.3910 on the hourly chart of GBP/USD.
  • USD/CAD traded towards the 1.2375 support zone before starting an upside correction.
  • There was a break above a major bearish trend line with resistance near 1.2455 on the hourly chart.

GBP/USD Technical Analysis

This past week, the British Pound made another attempt to clear the 1.3990 and 1.4000 resistance levels against the US Dollar. The GBP/USD pair failed to gain strength and started a fresh decline below the 1.3950 support zone.

There was a clear break below the 1.3920 support level and the 50 hourly simple moving average. There was also a break below the 1.3850 support level. Moreover, there was a break below a major bullish trend line with support near 1.3910 on the hourly chart of GBP/USD.

The pair traded as low as 1.3817 on FXOpen and it is currently consolidating losses. An initial resistance on the upside is near the 1.3850 level. It is close to the 23.6% Fib retracement level of the downward move from the 1.3959 high to 1.3817 low.

The first major resistance is near the 1.3880 level. The 50% Fib retracement level of the downward move from the 1.3959 high to 1.3817 low is also near 1.3880 level.

The main resistance is now forming near 1.3910 and the 50 hourly simple moving average. A successful close above the 1.3880 and 1.3900 levels could open the doors for a decent increase in the coming sessions.

Conversely, the pair might continue to move down below the 1.3820 and 1.3800 support levels. Any more losses may possibly open the doors for a push towards the 1.3740 support level.

USD/CAD Technical Analysis

The US Dollar started a major decline from well above 1.2600 against the Canadian Dollar. The USD/CAD pair traded towards the 1.2375 zone before it started a fresh increase.

Recently, there was a break above the 1.2420 and 1.2440 resistance levels. There was a break above a major bearish trend line with resistance near 1.2455 on the hourly chart. The pair is now trading above the 1.2500 level and the 50 hourly simple moving average.

It even spiked above 1.2500 and traded as high as 1.2547. There was a minor drop from 1.2547 to 1.2484. The pair corrected higher and traded above the 50% Fib retracement level of the recent decline from the 1.2547 high to 1.2484 low.

However, the pair is now struggling to clear the 1.2530 zone. It is close to the 76.4% Fib retracement level of the recent decline from the 1.2547 high to 1.2484 low.

On the upside, the 1.2550 level is a key resistance. Therefore, a successful break and close above the 1.2550 resistance level could lead the pair towards the 1.2620 and 1.2640 levels. If not, there is a risk of a fresh decline towards the 1.2475 level and the 50 hourly simple moving average. The next major support sits near the 1.2435 level.