GBP/USD is attempting a recovery wave from 1.2300. USD/CAD is consolidating and might aim for a move above the 1.3760 resistance zone.
Important Takeaways for GBP/USD and USD/CAD Analysis Today
- The British Pound started a recovery wave above the 1.2400 resistance.
- There is a key bearish trend line forming with resistance near 1.2520 on the daily chart of GBP/USD at FXOpen.
- USD/CAD is showing positive signs above the 1.3660 support zone.
- There is a major bullish trend line forming with support at 1.3620 on the daily chart at FXOpen.
GBP/USD Technical Analysis
On the daily chart of GBP/USD at FXOpen, the pair started a fresh decline from the 1.2900 zone. The British Pound traded below the 1.2600 support to move into a bearish zone against the US Dollar.
The pair even traded below 1.2400 and the 50-day simple moving average. Finally, the bulls appeared near the 1.2300 level. A low was formed near 1.2299 and the pair is now attempting a recovery wave. There was a fresh upside above the 1.2400 level.
The pair climbed above the 23.6% Fib retracement level of the downward move from the 1.2893 swing high to the 1.22299 low. Immediate resistance on the upside is near a key bearish trend line at 1.2520.
The first major resistance on the GBP/USD chart is near the 1.2600 level or the 50-day simple moving average. A close above the 1.2600 resistance might spark a decent upward wave. The next major resistance is near the 1.2750 level. Any more gains could lead the pair toward the 1.2900 resistance in the medium term.
Initial support sits near 1.2400. The next major support sits at 1.2300, below which there is a risk of another sharp decline. In the stated case, the pair could drop toward 1.2120.
USD/CAD Technical Analysis
On the daily chart of USD/CAD at FXOpen, the pair formed a strong support base above the 1.3180 level. The US Dollar started a fresh increase above the 1.3370 resistance against the Canadian Dollar.
The pair cleared the 50-day simple moving average and climbed above 1.3600. Finally, it tested the 1.3850 zone before there was a downside correction. The pair traded below the 1.3760 support zone. The pair dipped below the 23.6% Fib retracement level of the upward move from the 1.3477 swing low to the 1.3845 high.
However, the pair is now stable above 1.3660, and the 50% Fib retracement level of the upward move from the 1.3477 swing low to the 1.3845 high.
There is also a major bullish trend line forming with support at 1.3620. Initial resistance sits near the 1.3760 level. A clear upside break above 1.3760 could start another steady increase. The next major resistance is the 1.3845 level.
A close above the 1.3845 level might send the pair toward the 1.3950 level. Any more gains could open the doors for a test of the 1.4000 region.
Conversely, the pair could start another decline. Initial support is near the 1.3660 level on the same USD/CAD chart. The next major support is near 1.3620. A downside break below the 1.3620 level could push the pair further lower. The next major support is near the 50-day simple moving average, below which the pair might visit 1.3370.
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