Market Analysis: GBP/USD Recovers While USD/CAD Takes A Dive
GBP/USD started a fresh increase above the 1.2400 zone. USD/CAD declined and now consolidates below the 1.4360 level.
Important Takeaways for GBP/USD and USD/CAD Analysis Today
· The British Pound is eyeing more gains above the 1.2465 resistance.
· There was a break above a key bearish trend line with resistance at 1.2390 on the hourly chart of GBP/USD at FXOpen.
· USD/CAD started a fresh decline after it failed to clear the 1.4800 resistance.
· There is a short-term bearish trend line forming with resistance at 1.4320 on the hourly chart at FXOpen.
GBP/USD Technical Analysis
On the hourly chart of GBP/USD at FXOpen, the pair formed a base above the 1.2330 level. The British Pound started a steady increase above the 1.2360 resistance zone against the US Dollar, as discussed in the previous analysis.
There was a break above a key bearish trend line with resistance at 1.2390. The pair surpassed the 50% Fib retracement level of the downward move from the 1.2549 swing high to the 1.2332 low.
The pair gained strength above the 1.2420 level and the 50-hour simple moving average. The pair tested the 1.2460 zone and is currently consolidating gains. The bulls are now active near the 1.2440 level. If there is another decline, the pair could find support near the 1.2395 level.
The first major support sits near the 1.2365 zone. The next major support is 1.2330. If there is a break below 1.2330, the pair could extend the decline. The next key support is near the 1.2250 level. Any more losses might call for a test of the 1.2150 support.
Conversely, the bulls might aim for more gains. The RSI moved above the 60 level on the GBP/USD chart and the pair is now approaching a major hurdle at 1.2465 and the 61.8% Fib retracement level of the downward move from the 1.2549 swing high to the 1.2332 low.
An upside break above the 1.2465 zone could send the pair toward 1.2500. Any more gains might open the doors for a test of 1.2550.
USD/CAD Technical Analysis
On the hourly chart of USD/CAD at FXOpen, the pair climbed toward the 1.4800 resistance zone before the bears appeared. The US Dollar formed a swing high near 1.4790 and recently declined below the 1.4500 support against the Canadian Dollar.
There was also a close below the 50-hour simple moving average and 1.4360. The bulls are now active near the 1.4270 level. The pair is now consolidating losses below the 23.6% Fib retracement level of the downward move from the 1.4792 swing high to the 1.4270 low.
If there is a fresh increase, the pair could face resistance near the 1.4320 level. There is also a short-term bearish trend line forming with resistance at 1.4320.
The next key resistance on the USD/CAD chart is near the 1.4360 level. If there is an upside break above 1.4360, the pair could rise toward the 1.4395 resistance. The next major resistance is near the 50% Fib retracement level of the downward move from the 1.4792 swing high to the 1.4270 low at 1.4530, above which it could rise steadily toward the 1.4790 resistance zone.
Immediate support is near the 1.4270 level. The first major support is near 1.4240. A close below the 1.4240 level might trigger a strong decline. In the stated case, USD/CAD might test 1.4000. Any more losses may possibly open the doors for a drop toward the 1.3850 support.
Read more: https://fxopen.com/blog/en/aj-market-analysis-gbp-usd-recovers-while-usd-cad-takes-a-dive/
Text source: Forex Trading Blog
