Last Updated on May 31, 2021
GBP/USD is holding gains above the 1.4100 and 1.4120 support levels. USD/CAD is struggling and it could decline further if it breaks the 1.2060 support.
Important Takeaways for GBP/USD and USD/CAD
- The British Pound started a fresh increase above the 1.4100 resistance level.
- There was a break above a key bearish trend line with resistance near 1.4190 on the hourly chart of GBP/USD.
- USD/CAD declined steadily after it failed to clear the 1.2140 resistance zone.
- There is a major bullish trend line forming with support near 1.2070 on the hourly chart.
GBP/USD Technical Analysis
The British Pound remained well bid above the 1.4080 and 1.4100 support levels against the US Dollar. The last swing low was formed near 1.4100 before the GBP/USD started a fresh increase.
The recent low was formed near 1.4136 on FXOpen and the pair is now rising steadily. It broke the 1.4150 resistance level and the 50 hourly simple moving average. There was a break above the 50% Fib retracement level of the downward move from the 1.4219 high to 1.4136 low.
There was also a break above a key bearish trend line with resistance near 1.4190 on the hourly chart of GBP/USD. The pair is now trading nicely above the 1.4180 level.
It is testing the 76.4% Fib retracement level of the downward move from the 1.4219 high to 1.4136 low. A clear break above the 1.4200 resistance level could open the doors for a larger increase. In the stated case, the pair could rise towards the 1.4220 resistance.
The next major resistance is near 1.4235, above which GBP/USD might test the 1.4300 zone. An initial support on the downside is near the 1.4180 level.
The first major support is near the 1.4165 level and the 50 hourly simple moving average. Any more losses could open the doors for a move towards the 1.4120 support zone.
USD/CAD Technical Analysis
The US Dollar made a few attempts to clear the 1.2150 resistance zone against the Canadian Dollar. However, the USD/CAD pair failed to surpass 1.2150 and started a fresh decline.
The last swing high was near 1.2119 before the pair declined below 1.2100. A low is formed near 1.2063 and the pair is now trading below the 50 hourly simple moving average. An immediate resistance is near the 1.2080 level.
The first major resistance is near the 1.2090 level and the 50 hourly simple moving average. It is near the 50% Fib retracement level of the downward move from the 1.2119 high to 1.2063 low.
The next major resistance is near the 1.2105 level. It coincides with the 76.4% Fib retracement level of the downward move from the 1.2119 high to 1.2063 low. The main breakout resistance is still near the 1.2150 level.
An initial support on the downside is near the 1.2070 level. There is also a major bullish trend line forming with support near 1.2070 on the hourly chart. A downside break below the trend line could lead the price towards the 1.2020 support.
The next major support could be the 1.2000 zone, below which the USD/CAD pair could decline towards the 1.1950 level in the near term.
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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