GBP/USD Eyes More Upsides, USD/CAD Faces Hurdles

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GBP/USD started a fresh increase from the 1.3400 support zone. USD/CAD is declining, and it is facing resistance near 1.2400.

Important Takeaways for GBP/USD and USD/CAD

· The British Pound found support above 1.3400 and started a fresh increase.

· There is a key bullish trend line forming with support near 1.3690 on the hourly chart of GBP/USD.

· USD/CAD started a major decline from well above the 1.2550 zone.

· There is a major bearish trend line forming with resistance near 1.2395 on the hourly chart.

GBP/USD Technical Analysis

After a major decline, the British Pound found support above 1.2400 against the US Dollar. GBP/USD traded as low as 1.3410 and recently started an upside correction.

The pair broke the 1.3500 resistance to move into a positive zone. There was a break above the 50% Fib retracement level of the downward move from the 1.3907 swing high to 1.3410 low. It is now trading above the 1.3650 level and the 50 hourly simple moving average.

GBP/USD Hourly Chart

GBP/USD is now consolidating above the 1.3680 level. The pair is also trading above the 61.8% Fib retracement level of the downward move from the 1.3907 swing high (formed on FXOpen) to 1.3410 low.

An immediate resistance is near the 1.3770 level. The first major resistance is near the 1.3800 level. If there is an upside break above the 1.3800 zone, the pair could rise towards 1.3900. The next key resistance could be 1.3920, above which the pair could gain strength.

On the downside, the first key support is near the 1.3680 area. There is also a key bullish trend line forming with support near 1.3690 on the hourly chart of GBP/USD.

If there is a break below 1.3680, the pair could decline extend its decline. The next key support is near the 1.3620 level. Any more losses might call for a test of the 1.3550 support.

USD/CAD Technical Analysis

The US Dollar started a major decline from well above 1.2550 against the Canadian Dollar. USD/CAD broke the 1.2500 support zone to move into a bearish zone.

The pair even settled below 1.2440 and the 50 hourly simple moving average. The pair traded below 1.2400 and formed a low near 1.2337. The pair is now recovering and trading above the 1.2350 resistance zone.

USD/CAD Hourly Chart

There was a break above the 23.6% Fib retracement level of the downward move from the 1.2495 swing high to 1.2337 low. It is now facing resistance near the 1.2395 level.

There is also a major bearish trend line forming with resistance near 1.2395 on the hourly chart. The next major resistance is near the 1.2410 level. The 50% Fib retracement level of the downward move from the 1.2495 swing high to 1.2337 low is also near 1.2410.

A clear break above the trend line resistance and 1.2410 could open the doors for more gains. The next major resistance is near the 1.2450 level. Any more gains could lead the pair towards the 1.2500 zone.

An initial support on the downside is near the 1.2365 level. The first major support is near the 1.2350 level. The next major support is near the 1.2335 level. Any more losses may possibly open the doors for a drop towards the 1.2300 support.

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.

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