The GBPUSD has been steadily moving lower in today’s trading. The decline has been fueled by weaker UK economic data and a broader wave of US dollar strength, as markets respond to the inflationary implications of higher U.S. tariffs. Additionally, rising concerns over slower global growth have supported safe-haven flows into the dollar, adding further pressure to the pound.
Looking at the weekly chart, the USDCAD has dipped into a key swing area dating back to 2016, which spans between 1.3411 and 1.3514. Today’s low reached 1.3495, with a modest bounce currently taking the pair to around 1.3504.
On the hourly chart below, the price decline today has broken below the 61.8% retracement level at 1.3529, moving further away from the 100-hour moving average (blue line). While the pair briefly moved above that moving average yesterday, it quickly reversed lower with momentum, signaling strong selling pressure.
The pair also fell through a swing area between 1.3505 and 1.3514, reaching a session low of 1.3495. These broken levels now act as near-term resistance, and traders will be watching them closely. A move back above 1.3514, and especially the 61.8% level at 1.3529, would be a disappointment for sellers. That retracement level has been tested multiple times this week — including lows on Tuesday and yesterday — and today’s break adds to its technical significance going forward.
That 61.8% area the key area now and going forward. Stay below and more momentum to the downside can be anticipated
