GBP/USD Is Struggling, USD/CAD Facing Key Resistance

FXOpen

GBP/USD started a major decline from well above 1.2260 and broke the 1.2200 support. USD/CAD is moving higher, but it is facing a strong resistance near 1.3330.

Important Takeaways for GBP/USD and USD/CAD

  • The British Pound is declining and it broke the key 1.2200 and 1.2180 support levels.
  • There is a major declining channel forming with resistance near 1.2180 on the hourly chart of GBP/USD.
  • USD/CAD is slowly moving higher towards the 1.3330 and 1.3340 resistance levels.
  • There is a connecting bullish trend line forming with support near 1.3260 on the hourly chart.

GBP/USD Technical Analysis

The British Pound failed to settle above the 1.2300 resistance level against the US Dollar. As a result, the GBP/USD pair started a steady decline and broke the 1.2250 and 1.2200 support levels.

Moreover, there was a close below the 1.2200 support level and the 50 hourly simple moving average. Finally, the pair even broke the 1.2180 and 1.2150 support levels. A swing low was formed near 1.2136 on FXOpen and the pair is currently correcting higher.

GBP/USD Technical Analysis British Pound US Dollar Chart

It is trading above 1.2150 plus the 23.6% Fib retracement level of the recent slide from the 1.2225 high to 1.2136 low. However, there are many hurdles on the upside near the 1.2180 level and the 50 hourly simple moving average.

Moreover, there is a major declining channel forming with resistance near 1.2180 on the hourly chart of GBP/USD. The trend line coincides with the 50 hourly simple moving average.

The 50% Fib retracement level of the recent slide from the 1.2225 high to 1.2136 low is also near the 1.2180 level to act as a resistance. Therefore, the pair is likely to face a strong resistance near 1.2180.

The next key resistance is at 1.2200, above which the pair could start a decent recovery in the coming sessions. Conversely, if the pair fails to move above the 1.2180 or 1.2200 resistance, it could continue to decline.

An immediate support is near the 1.2140 level, below which GBP/USD might decline towards the 1.2100 support level in the near term.

USD/CAD Technical Analysis

The US Dollar remained in a positive zone above the 1.3250 and 1.3260 support levels against the Canadian Dollar. The USD/CAD pair even settled above the 1.3260 pivot level to move into a positive zone.

Recently, there was a break above the 1.3300 resistance and the 50 hourly simple moving average. However, the pair is still struggling to break the key 1.3330 and 1.3340 resistance levels.

USD/CAD Technical Analysis Chart

The recent high was formed near 1.3332 and the pair is currently correcting lower. It already tested the 23.6% Fib retracement level of the recent wave from the 1.3246 low to 1.3332 high.

On the downside, there are a few key supports near the 1.3300 level and the 50 hourly simple moving average. The next major support is near the 1.3280 level. An intermediate support is near the 1.3290 level plus the 50% Fib retracement level of the recent wave from the 1.3246 low to 1.3332 high.

Moreover, there is a connecting bullish trend line forming with support near 1.3260 on the hourly chart. Therefore, the pair is likely to find many supports, starting with 1.3300 and up to 1.3260.

On the upside, USD/CAD must break the 1.3330 and 1.3340 resistance levels to continue higher towards the 1.3400 resistance in the coming sessions.

Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Latest from Forex Analysis

Commodities and European currencies Test Key Supports EUR/USD Analysis: The Price Today Has Set Its Minimum Since the Beginning of March Market Analysis: GBP/USD Dives While USD/CAD Gains Bullish Pace The US Currency Corrects After Recent Growth USD/JPY Price Analysis: Consolidation ahead of US News

Latest articles

Indices

Although UK-100 Index Is Near All-time Highs, UK Economy Slips into Recession

Technically, a national economic recession is defined as two consecutive quarters of contraction, and yesterday's Office for National Statistics data confirmed that this has happened — UK GDP fell in the third and fourth quarters of 2023 by 0.1% and

Cryptocurrencies

DOGE Price Increases by 170% in Less Than 2 Months

On February 1, 2024, the DOGE/USD rate was = 0.0783. On the last Friday of March, it rose to 0.2150. The rising price means Dogecoin is now the eighth-largest cryptocurrency in the world by market capitalization, overtaking Cardano

Commodities

Market Analysis: Gold Price and Crude Oil Price Gain Bullish Momentum

Gold price started a steady increase above the $2,200 resistance level. Crude oil prices are gaining bullish momentum and might rise toward $85.00.

Important Takeaways for Gold and Oil Prices Analysis Today

· Gold price started a decent increase

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 65.68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.