The GBP/USD pair has recently experienced a decline below the crucial 1.2670 support zone, signaling a shift towards a bearish trend. The pair faced resistance at the 1.2700 level, leading to a downward movement. Currently, there is a key bearish trend line forming with resistance at 1.2640, highlighting the potential for further downside in the near future.
Upon closer examination of the hourly chart of GBP/USD at FXOpen, it is evident that the pair has broken below the 1.2670 support and the 50-hour simple moving average. This breakdown has led to a bearish sentiment in the market, with the pair consolidating losses near the 1.2621 level. Despite this, there is a possibility of a minor upside correction, with immediate resistance at 1.2645 and further resistance at 1.2655 and 1.2670.
In case of a sustained upward move, the pair could aim for the 1.2700 resistance level. However, if the downward pressure continues, the pair may find support at 1.2625 and 1.2600. A breach below these support levels could lead to a sharp decline towards 1.2550.
USD/CAD Technical Analysis
Conversely, the USD/CAD pair is showing positive signs, with a rise above the 1.3675 support zone. The pair has formed a strong support base above 1.3640 and has managed to break above the 1.3675 resistance level. This upward movement has led to a climb above the 50-hour simple moving average and subsequent consolidation around the 1.3734 level.
Examining the hourly chart of USD/CAD at FXOpen reveals a major bullish trend line with support at 1.3705. The pair has also crossed the 23.6% Fib retracement level, signaling a bullish momentum. Further upside potential exists, with resistance levels at 1.3735, 1.3750, and 1.3800. However, a downside break below the 1.3640 support level could trigger a deeper decline towards 1.3620 and 1.3550.
In the event of a sustained increase, the pair could face hurdles at 1.3735 before potentially reaching the 1.3750 and 1.3800 resistance levels. Additional gains might open the door for a test of the 1.3850 level.
Overall, both the GBP/USD and USD/CAD pairs are experiencing contrasting trends, with the former indicating a bearish bias while the latter suggests a bullish momentum. Traders should closely monitor key support and resistance levels to make informed trading decisions in the current market environment.