After facing a decline from the 1.2900 zone, the British Pound is now attempting a recovery wave from the 1.2300 level. The pair fell below the 1.2600 support and even dropped below 1.2400 and the 50-day simple moving average. However, a low was established near 1.2299, leading to the current recovery wave. The upside movement has surpassed the 23.6% Fib retracement level, but the pair is now facing important resistance near a key bearish trend line at 1.2520.
On the other hand, the USD/CAD pair is consolidating above the 1.3660 support zone. Although there was a downside correction after testing the 1.3850 zone, the pair remains stable above 1.3660. Additionally, there is a major bullish trend line forming with support at 1.3620. The immediate resistance for USD/CAD is near the 1.3760 level, with a clear break above this level signaling a potential steady increase.
Looking at the daily chart of GBP/USD, the recent decline marked a significant bearish movement for the pair. However, the current recovery wave suggests a potential upside move. The first major resistance for GBP/USD is near the 1.2600 level, followed by the 1.2750 level. Further gains could lead the pair towards the 1.2900 resistance in the medium term. On the downside, initial support lies at 1.2400, with a risk of further decline if the pair breaks below 1.2300.
Analyzing the daily chart of USD/CAD reveals a strong support base above the 1.3180 level. Despite a downside correction from the 1.3850 zone, the pair remains stable above 1.3660. A clear break above the 1.3760 resistance level could signal another bullish wave for USD/CAD, with the next major resistance at 1.3845. Conversely, a downside break below 1.3620 could push the pair lower towards the 50-day simple moving average at 1.3370.
Both GBP/USD and USD/CAD are currently in crucial stages of their respective trends. While GBP/USD is attempting a recovery wave from the 1.2300 level, USD/CAD is consolidating above the 1.3660 support zone. Traders should keep a close eye on the key resistance and support levels mentioned in this analysis to gauge the potential future movements of these currency pairs. As always, it’s important to consider risk management strategies and stay updated on market developments when trading forex.