GBP/USD Turns Red While USD/CAD Aims Higher
GBP/USD is trading in a bearish zone below the 1.1480 and 1.1440 support levels. USD/CAD is surging and could continue to rise above the 1.3300 resistance zone.
Important Takeaways for GBP/USD and USD/CAD
· The British Pound started a major decline below the 1.1550 support zone.
· There is a key bearish trend line forming with resistance near 1.1415 on the hourly chart of GBP/USD.
· USD/CAD started a fresh increase above the 1.3200 resistance zone.
· There is a connecting bullish trend line forming with support near 1.3220 on the hourly chart.
GBP/USD Technical Analysis
After a strong rejection near 1.1740, the British Pound started a fresh decline against the US Dollar. GBP/USD declined heavily below the 1.1550 support zone.
There was a move below the 1.1500 support zone and the 50 hourly simple moving average. The pair even traded below the 1.1480 support zone and formed a low near 1.1350 on FXOpen. It is now consolidating losses above the 1.1350 level.
An immediate resistance is near the 1.1415 level. There is also a key bearish trend line forming with resistance near 1.1415 on the hourly chart of GBP/USD. The next resistance is near the 1.1440 level or the 38.2% Fib retracement level of the downward move from the 1.1589 swing high to 1.1350 low.
The main resistance is near the 1.1480 level. It is near the 50% Fib retracement level of the downward move from the 1.1589 swing high to 1.1350 low.
If there is an upside break above the 1.1480 zone, the pair could rise towards 1.1550. The next key resistance could be 1.1580, above which the pair could gain strength.
On the downside, an initial support is near the 1.1380 area. The first major support is near the 1.1350 level. If there is a break below 1.1350, the pair could extend its decline. The next key support is near the 1.1300 level. Any more losses might call for a test of the 1.1240 support.
USD/CAD Technical Analysis
The US Dollar started a fresh increase above the 1.3120 resistance zone against the Canadian Dollar. USD/CAD gained pace for a move above the 1.3200 resistance zone.
The pair even climbed above the 1.3250 level and the 50 hourly simple moving average. It traded as high as 1.3302 and is currently consolidating gains. An immediate support is near the 1.3240 level. It is near the 38.2% Fib retracement level of the upward move from the 1.3138 swing low to 1.3302 high.
The first major support is near the 1.3220 level. There is also a connecting bullish trend line forming with support near 1.3220 on the hourly chart.
The trend line is near the 50% Fib retracement level of the upward move from the 1.3138 swing low to 1.3302 high. Any more losses may possibly open the doors for a drop towards the 1.3150 support zone in the near term.
On the upside, the pair is facing resistance near 1.3300. The next major resistance is near the 1.3320 level. A clear break above the 1.3320 level could open the doors for more gains.
The next major resistance is near the 1.3380 level, above which USD/CAD could rise steadily towards the main 1.3450 resistance zone.
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.