The British Pound (GBP) has started a fresh increase against the US Dollar (USD), with the GBP/USD pair rising above the 1.2625 level. This upward movement comes after the pair formed a base above the 1.2665 resistance zone. The bulls managed to push the pair above the 1.2725 level and the 50-hour simple moving average. Additionally, a key bearish trend line with resistance near 1.2740 was broken, indicating a possible continuation of the upward trend. Currently, the pair is consolidating gains after testing the 1.2755 zone.
If there is a downside correction, the pair could find support at the same trend line at 1.2740. Further support levels include the 23.6% Fib retracement level of the upward move from the 1.2625 swing low to the 1.2755 high, as well as 1.2690 and the 50-hour simple moving average. A break below 1.2690 may lead to extended declines, with the next key support level near 1.2665.
On the upside, the RSI has moved above the 65 level on the GBP/USD chart, indicating bullish momentum. The pair is now approaching a major hurdle at 1.2755. A break above this resistance zone could propel the pair towards 1.2800, with further gains potentially targeting 1.2850.
In contrast to GBP/USD, the USD/CAD pair has been declining, struggling to clear the 1.3465 resistance level. After reaching a high near 1.3642, the US Dollar (USD) has dropped below the 1.3415 support against the Canadian Dollar (CAD). This downward movement was accompanied by a close below the 50-hour simple moving average and 1.3390.
Currently, USD/CAD is finding support near the 1.3370 level, with a short-term connecting bullish trend line forming around 1.3368. The first major support is at 1.3360, and a close below this level might trigger a strong decline. If that happens, the pair could test the 1.3300 level, potentially opening doors for a drop towards the 1.3250 support.
If there is a fresh increase in USD/CAD, the pair could face resistance near the 23.6% Fib retracement level of the downward move from the 1.3464 swing high to the 1.3367 low. The next key resistance level is the 50-hour simple moving average at 1.3415. If there is an upside break above this level, the pair could rise towards the 1.3440 resistance, followed by the 1.3465 level. A break above 1.3465 could lead to a steady rise towards the 1.3500 resistance zone.
The GBP/USD pair has experienced a fresh increase, breaking above key resistance levels and forming a base above the 1.2625 level. On the other hand, the USD/CAD pair has declined after failing to clear the 1.3465 resistance. Both pairs have important support and resistance levels to watch, which will determine the future direction of these currency pairs.
Disclaimer: 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.
Leave a Reply