GBP/USD started a decent upside correction from the 1.2020 swing low and climbed above 1.2100. USD/CAD is currently correcting gains, but it is still above the key 1.3250 support area.
Important Takeaways for GBP/USD and USD/CAD
- The British Pound recovered recently above the 1.2080 and 1.2100 resistance levels.
- There is a major bullish trend line forming with support near 1.2090 on the hourly chart of GBP/USD.
- USD/CAD failed once again near the key 1.3340 resistance area.
- There is a connecting bearish trend line forming with resistance near 1.3280 on the hourly chart.
GBP/USD Technical Analysis
The British Pound traded close to the 1.2000 support area this month against the US Dollar. The GBP/USD pair formed a swing low near 1.2020 and recently started an upside correction.
The pair recovered above the key 1.2080 and 1.2100 resistance levels. Moreover, there was a close above the 1.2100 level and the 50 hourly simple moving average. Finally, the pair climbed above the 1.2150 level and traded as high as 1.2175 on FXOpen.
At the moment, the pair is correcting gains and traded below the 23.6% Fib retracement level of the last upward move from the 1.2063 swing low to 1.2175 high.
On the downside, there are many supports, starting with 1.2140 and 1.2132. Moreover, there is a major bullish trend line forming with support near 1.2090 on the hourly chart of GBP/USD. An intermediate support is near the 1.2120 level and the 50 hourly simple moving average.
Moreover, the 50% Fib retracement level of the last upward move from the 1.2063 swing low to 1.2175 high is also near the 1.2119 level to act as a strong support.
Therefore, a downside correction towards the 1.2120 and 1.2100 levels could find a strong buying interest in the coming sessions. Only a close below 1.2080 might push the pair back towards 1.2020.
On the upside, an immediate resistance is near the 1.2175 level. If there is an upside break above 1.2175 and 1.2200, GBP/USD could continue to recover towards the 1.2250 level.
USD/CAD Technical Analysis
The US Dollar formed a strong support near 1.3200 and climbed higher against the Canadian Dollar. The USD/CAD pair traded above the 1.3240 and 1.3250 resistance levels to move into a positive zone.
Moreover, there was a break above the 1.3300 level and the 50 hourly simple moving average. However, the pair failed near the key 1.3340 resistance area (the previous resistance zone).
As a result, the pair started a downside correction and declined below 1.3300. There was a break below the 1.3280 support and the 50 hourly simple moving average. Besides, the pair is now trading below the 50% Fib retracement level of the last wave from the 1.3210 swing low to 1.3338 high.
However, there is a key support waiting near the 1.3250 and 1.3240 levels. An immediate support is near the 61.8% Fib retracement level of the last wave from the 1.3210 swing low to 1.3338 high.
If there is a downside break below the 1.3240 support, USD/CAD could fall back towards the 1.3200 support area. On the upside, there is a key resistance forming near the 1.3280 and 1.3300 levels.
Moreover, there is a connecting bearish trend line forming with resistance near 1.3280 on the hourly chart. A successful break above the trend line and 1.3300 could start a fresh increase in the near term towards 1.3340 or even 1.3360.