The GBP/USD pair has recently experienced a decline below the 1.2670 support zone, signaling a bearish trend. The British Pound failed to sustain its momentum above the 1.2700 resistance level and has since dropped below key support levels. As indicated on the hourly chart of GBP/USD at FXOpen, there is a key bearish trend line forming with resistance at 1.2640. This trend line is likely to act as a significant barrier for any potential upside moves in the near term. The pair’s inability to break above this resistance line could further strengthen the bearish sentiment.
Upon breaking below the 1.2670 support, GBP/USD continued to slide, breaching the 1.2640 level and the 50-hour simple moving average. Although a temporary support level was found near 1.2625, the pair remains in a consolidation phase. Immediate resistance is seen near the bearish trend line at 1.2645, followed by the 50% Fib retracement level at 1.2655. The key hurdle for the bulls lies at the 1.2670 resistance level, which, if breached, could pave the way for a sustained upward movement towards 1.2700 and beyond. On the downside, initial support is at 1.2625, with a major support zone at 1.2600. A break below 1.2600 could lead to a sharper decline towards 1.2550.
USD/CAD Technical Analysis
Contrary to GBP/USD, the USD/CAD pair has been displaying positive signs of strength, indicating a bullish outlook. After forming a strong support base above the 1.3640 level, the US Dollar surged above the 1.3675 resistance against the Canadian Dollar. The pair managed to clear multiple hurdles, including the 1.3685 and 1.3700 levels, along with the 50-hour simple moving average. This bullish momentum led to a high at 1.3734 before entering a consolidation phase.
On the hourly chart of USD/CAD at FXOpen, a major bullish trend line is seen at 1.3705, acting as an immediate support level. The 23.6% Fib retracement level further supports this trend line, emphasizing its importance in the short term. In case of a downside move, the 1.3675 level or the 50% Fib retracement level could provide additional support. The main support zone is near 1.3640, with a break below this level signaling further bearish pressure. Subsequent support levels are found at 1.3620 and 1.3550.
If the USD/CAD pair manages to push higher, it may face resistance near the 1.3735 level. A clear breakout above this level could trigger another upward move towards 1.3750 and even 1.3800. Further gains could potentially lead the pair to test the 1.3850 level, indicating a strong bullish momentum.
While the GBP/USD pair is currently facing bearish challenges, the USD/CAD pair seems to be in a more favorable position to extend its gains. Traders should closely monitor key levels and trend lines for potential trading opportunities in these currency pairs.
Remember, trading forex involves risks, and it’s essential to conduct thorough analysis and risk management strategies before entering any positions.
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