GBP/USD Surging, USD/CAD Facing Many Hurdles

FXOpen

GBP/USD climbed higher and settled above the 1.3210 resistance level. USD/CAD corrected higher, but it failed to break the key 1.3370 resistance area and later declined.

Important Takeaways for GBP/USD and USD/CAD

  • The British Pound gained bullish momentum and traded above the 1.3200 resistance area.
  • There is a major bullish trend line formed with support at 1.3270 on the hourly chart of GBP/USD.
  • USD/CAD broke a key bearish trend line with resistance at 1.3330 on the hourly chart.
  • The pair failed to break the 1.3370 resistance trimmed most its recent gains.

GBP/USD Technical Analysis

The British Pound found a strong buying interest near the 1.2970 and 1.3000 levels against the US Dollar. The GBP/USD pair started a solid upward move and broke the 1.3120 and 1.3200 resistance levels to move into a positive zone.

It even broke the 1.3300 barrier and traded as high as 1.3380 on FXOpen. There was even a close above the 1.3250 level and the 50 hourly simple moving average. Later, there was a downside correction below the 1.3300 and 1.3280 levels.

GBP/USD Technical Analysis Cable Chart

However, the 1.3200-1.3210 area acted as a decent support and prevented further losses. There is also a major bullish trend line formed with support at 1.3270 on the hourly chart of GBP/USD.

The pair moved higher above 1.3250 and the 38.2% Fib retracement level of the last decline from the 1.3380 high to 1.3202 low. The pair also moved above the 1.3280 level, but the 1.3300 level is currently acting as a resistance.

Besides, the pair is struggling to gain strength above the 50% Fib retracement level of the last decline from the 1.3380 high to 1.3202 low. The current price action is positive and suggests that the pair may soon break the 1.3300 and 1.3320 resistance levels.

On the upside, the next key resistance is near the 1.3350 level, above which the pair could revisit the 1.3380 swing high. On the downside, a break below the trend line support at 1.3270 could push the pair back towards the 1.3200 support area.

USD/CAD Technical Analysis

The US Dollar declined heavily and broke the 1.3400 and 1.3350 support levels against the Canadian Dollar. The USD/CAD pair even broke the 1.3300 support level before buyers appeared near the 1.3290 level.

A low was formed at 1.3289 and later the pair formed a solid support base near the 1.3300 level. Finally, there was an upside break above 1.3320 level and a key bearish trend line with resistance at 1.3330 on the hourly chart.

USD/CAD Technical Analysis

The pair rallied above the 1.3350 level and the 50 hourly simple moving average. However, the 1.3370 level acted as a solid resistance and prevented further gains.

As a result, there was a fresh decline below the 1.3350 level and the 50% Fib retracement level of the last wave from the 1.3289 low to 1.3370 high. The pair even broke the 1.3330 level and retested the 1.3320 support area.

It is currently trading near the 61.8% Fib retracement level of the last wave from the 1.3289 low to 1.3370 high. It seems like USD/CAD could decline further before the 1.3300 support comes into play. As long as the pair is above 1.3300, it could bounce back. If not, the pair may slide sharply towards the 1.3250 level.

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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.

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