Market Analysis: GBP/USD Trims Gains While USD/CAD Rallies
GBP/USD started a pullback from the 1.3050 zone. USD/CAD is rising and might aim for more gains above the 1.3735 resistance.
Important Takeaways for GBP/USD and USD/CAD Analysis Today
The British Pound started a downside correction from the 1.3050 resistance zone.There is a key bearish trend line forming with resistance at 1.2940 on the hourly chart of GBP/USD at FXOpen.USD/CAD is showing positive signs above the 1.3700 support zone.There is a major bullish trend line forming with support at 1.3720 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 1.3050 resistance zone. The British Pound started a downside correction and traded below the 1.3010 support zone against the US Dollar.
The pair even traded below 1.2970 and the 50-hour simple moving average. Finally, the bulls appeared near the 1.2900 level. A low was formed at 1.2900 and the pair is now consolidating losses below the 23.6% Fib retracement level of the downward move from the 1.3044 swing high to the 1.2900 low.
Immediate resistance on the upside is near a key bearish trend line at 1.2940. The first major resistance is near the 1.2970 zone and the 50% Fib retracement level of the downward move from the 1.3044 swing high to the 1.2900 low.
The main hurdle sits at 1.3010. A close above the 1.3010 resistance might spark a steady upward move. The next major resistance is near the 1.3050 zone. Any more gains could lead the pair toward the 1.3120 resistance in the near term.
Initial support on the GBP/USD chart sits at 1.2900. The next major support sits at 1.2880, below which there is a risk of another sharp decline. In the stated case, the pair could drop toward 1.2840.
USD/CAD Technical Analysis
On the hourly chart of USD/CAD at FXOpen, the pair formed a strong support base above the 1.3660 level. The US Dollar started a fresh increase above the 1.3680 resistance against the Canadian Dollar.
The bulls pushed the pair above the 1.3700 and 1.3720 levels. The pair cleared the 50-hour simple moving average and climbed above 1.3735. A high was formed at 1.3747 and the pair recently corrected some gains.
There was a move below the 23.6% Fib retracement level of the upward move from the 1.3670 swing low to the 1.3747 high. Initial support is near a major bullish trend line at 1.3720.
The next major support is near 1.3700 or the 50% Fib retracement level of the upward move from the 1.3670 swing low to the 1.3747 high on the same USD/CAD chart. The main support sits near the 1.3660 zone.
A downside break below the 1.3660 level could push the pair further lower. The next major support is near the 1.3625 support zone, below which the pair might visit 1.3550.
If there is another increase, the pair might face resistance near the 1.3735 level. A clear upside break above 1.3735 could start another steady increase. The next major resistance is the 1.3750 level.
A close above the 1.3750 level might send the pair toward the 1.3785 level. Any more gains could open the doors for a test of the 1.3820 level.
Filed under: News - @ July 22, 2024 6:13 am