20^th December 2021 Technical Analysis

GBPUSD

GBPUSD fell on Friday (December 17) due to the hawkish remarks of Fed officials boosting the U.S. dollar.

At the same time, concerns about the Omicron variant also weakened the euro and the pound, causing the GBPUSD to fall from the high point after the UK interest rate decision on Friday, closing down 0.59% to 1.3245. Due to the lower lows in the recent volatility trend, the technical bias is bearish.

The pair is currently trading near 1.32285 , and multiple resistance levels can be seen above which may prevent the price from rising further.

Resistance level1: 1.32400

Resistance level2: 1.32700

Resistance level3: 1.33000

Below the price, multiple support level can be seen which may prevent the price from falling.

Support level1: 1.32100

Support level2: 1.31900

Support level3: 1.31600

This Wednesday (December 22) the United Kingdom and the United States will each announce the latest GDP growth data. The higher the data, the better for their currencies.

Looking at the current price trend and economic development, it may be a good choice to sell the GBPUSD currency pair at a relative high level

USDCAD

USDCAD rose on Friday (December 17). Due to concerns about new strains, crude oil prices fell sharply on Friday, which led to a wave of Canadian dollar selling. At the same time, the Fed’s hawkish outlook further pushed the US dollar upward. On Friday, USDCAD gain to 1.3%, close to the 1.2900. The technical bias is bullish due to a higher low in the recent uptrend.

The pair is currently trading near 1.28904, and multiple resistance levels can be seen above which may prevent the price from rising further.

Resistance level1: 1.29200

Resistance level2: 1.29450

Resistance level3: 1.29800

Below the price, multiple support level can be seen which may prevent the price from falling.

Support level1: 1.28430

Support level2: 1.28100

Support level3: 1.27750

This Wednesday (December 22), the United States will announce the third quarter GDP growth data. The higher the data, the better for the US dollar. Therefore, it is favorable for the USDCAD currency pair, and vice versa.

Looking at the current price trend and economic development, it may be a good trading choice to buy the USDCAD currency pair at lower levels around current level.