GBP/USD Bounced Back While USD/CAD Nosedived

FXOpen

GBP/USD bounced back sharply and broke the 1.2700 resistance. USD/CAD declined heavily and it broke the 1.3450 and 1.3400 support levels to move into a bearish zone.

Important Takeaways for GBP/USD and USD/CAD

  • The British Pound recovered nicely and broke the 1.2700 pivot level.
  • There was a break above a major bearish trend line with resistance at 1.2650 on the hourly chart of GBP/USD.
  • USD/CAD declined below the 1.2450 and 1.2400 support levels to set the pace for more losses.
  • The pair is following a crucial bearish trend line with resistance at 1.3425 on the hourly chart.

GBP/USD Technical Analysis

The British Pound found support near the 1.2445 level after a massive decline against the US Dollar. The GBP/USD pair started a solid recovery and moved above the 1.2550 and 1.2640 resistance levels.

The pair even close above the 1.2700 pivot level and 50 hourly simple moving average. Buyers pushed the pair further higher and a new intraday high was formed above the 1.2740 level on FXOpen.

GBP/USD Technical Analysis British Pound Chart

During the rise, the pair broke many resistances, starting with 1.2640 and 1.2700. There was also a break above a major bearish trend line with resistance at 1.2650 on the hourly chart of GBP/USD. The pair even broke the 61.8% Fib retracement level of the last decline from the 1.2814 high to 1.2446 low.

The pair is now trading well above the 1.2720 level, the 50 hourly simple moving average, and the 76.4% Fib retracement level of the last decline from the 1.2814 high to 1.2446 low.

Therefore, there are chances of more gains towards the 1.2800 resistance levels in the near term. On the other hand, if there is a downside correction, the pair may find support near 1.2700 or 1.2680.

Overall, GBP/USD recovered nicely and the current price action indicates more gains above the 1.2750 and 1.2780 levels.

USD/CAD Technical Analysis

The US Dollar failed to break the key 1.3660-1.3670 resistance area against the Canadian Dollar. The USD/CAD pair started a major decline and broke the 1.3600, 1.3500 and 1.3450 support levels.

There was even a break below the 1.3400 support and the 50 hourly simple moving average. The pair traded below the 1.3380 level recently to move further into a bearish zone. Clearly, sellers are in control below 1.3400 and the 50 hourly simple moving average.

USD/CAD Technical Analysis Loonie Chart

If there is a downside extension, the pair may trade towards the 1.3340 and 1.3310 support levels. On the other hand, if there is an upside correction, an initial resistance is near the 23.6% Fib retracement level of the recent decline from the 1.3472 high to 1.3355 low.

There is also a crucial bearish trend line in place with resistance at 1.3425 on the hourly chart. The trend line coincides with the 50% Fib retracement level of the recent decline from the 1.3472 high to 1.3355 low.

Therefore, if the pair corrects higher from the current levels, it is likely to face sellers near 1.3380, 1.3400 and 1.3425. A proper close above the 1.3425 level may push the price towards the 1.3470 resistance area. On the downside, the main supports are at 1.3350, 1.3320 and 1.3300.

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

Weekly Market Wrap With Gary Thomson: NIKKEI-225, USD/JPY, GBP/USD, USD/CAD, Gold
Financial Market News

Weekly Market Wrap With Gary Thomson: NIKKEI-225, USD/JPY, GBP/USD, USD/CAD, Gold

Get the latest scoop on the week's hottest headlines, all in one convenient video. Join Gary Thomson, the COO of  FXOpen UK, as he breaks down the most significant news reports and shares his expert insights.

  • NIKKEI-225 Analysis Indicates Possibility

Forex Analysis

Commodities and European currencies Test Key Supports

On the eve of the Easter holidays, the main currency pairs have slightly slowed down the development of the main trends and are consolidating near key ranges, the breakdown of which could provoke a change in the vectors of medium-term

Shares

Stock Market Analysis: NVDA Losing Leadership?

Since the start of the week, the S&P-500 Index (US500) is up about 0.58% while NVDA's share price is down about 3.8%. This is a worrying sign for Nvidia stock investors — could it be a sign

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.