Market Analysis: GBP/USD Dips Below Support, USD/CAD Breaks Higher
GBP/USD started a fresh decline below the 1.3620 zone. USD/CAD is rising and might aim for more gains above the 1.3765 resistance.
Important Takeaways for GBP/USD and USD/CAD Analysis Today
- The British Pound started another decline from the 1.3620 resistance zone.
- There was a break below a connecting bullish trend line with support at 1.3460 on the hourly chart of GBP/USD at FXOpen.
- USD/CAD is showing positive signs above the 1.3720 support zone.
- There is a key bullish trend line forming with support at 1.3740 on the hourly chart at FXOpen.
GBP/USD Technical Analysis
On the hourly chart of GBP/USD at FXOpen, the pair struggled to continue higher above the 1.3620 resistance zone. The British Pound started a fresh decline and traded below the 1.3550 support zone against the US Dollar, as discussed in the previous analysis.
The pair even traded below 1.3500 and the 50-hour simple moving average. Finally, the bulls appeared near the 1.3380 level. There was a recovery wave above the 1.3450 level and the 23.6% Fib retracement level of the downward move from the 1.3622 swing high to the 1.3382 low.
However, the bears were active near the 1.3500 zone and the 50% Fib retracement level. As a result, there was a fresh bearish reaction below a connecting bullish trend line with support at 1.3460.
Initial support on the GBP/USD chart sits at 1.3380. The next major support is at 1.3350, below which there is a risk of another sharp decline. In the stated case, the pair could drop toward 1.3200.
Immediate resistance on the upside is near 1.3440. The first major resistance is near the 1.3500 zone. The main hurdle sits at 1.3530. A close above the 1.3530 resistance might spark a steady upward move. The next major resistance is near the 1.3565 zone. Any more gains could lead the pair toward the 1.3620 resistance in the near term.
USD/CAD Technical Analysis
On the hourly chart of USD/CAD at FXOpen, the pair formed a strong support base above the 1.3540 level. The US Dollar started a fresh increase above the 1.3600 resistance against the Canadian Dollar.
The bulls pushed the pair above the 1.3640 and 1.3700 levels. The pair cleared the 50-hour simple moving average and climbed above 1.3750. A high was formed at 1.3766 and the pair is now consolidating.
Initial support is near the 1.3740 level. There is also a key bullish trend line forming with support at 1.3740. The next major support is near the 1.3710 level or the 23.6% Fib retracement level of the upward move from the 1.3539 swing low to the 1.3766 high.
The main support sits near the 1.3650 zone on the USD/CAD chart. It is near the 50% Fib retracement level.
A downside break below the 1.3650 level could push the pair further lower. The next major support is near the 1.3595 support zone, below which the pair might visit 1.3540.
If there is another increase, the pair might face resistance near the 1.3765 level. A clear upside break above 1.3765 could start another steady increase. The next major resistance is the 1.3800 level. A close above the 1.3800 level might send the pair toward the 1.3880 level. Any more gains could open the doors for a test of the 1.4000 level.