GBP/USD H1 timeframe Chart: The past four weeks has seen sellers continue to dominate the market, highlighting their strong influence and the likelihood that this trend will continue. There has been no significant pushback from buyers. Prices are still trading near 1.3990 and could continue to fall. A break below the 1.3920 support line could maintain USD/CADs bearish trend. While last Novembers significant selloff suggests sellers still have an opportunity to drive prices lower, lets examine the situation from a shorter-term perspective. We will analyze the USD/CAD market situation using a daily chart. For the past three weeks, USD/CAD has formed bearish candlestick patterns on both the weekly and daily charts, indicating strong seller activity.
From November 8, 2025, through last night, the market declined, dropping approximately 150 pips from 1.3830 to 1.3905. This suggests further declines are likely, especially if sellers break below the 1.3875 support level, giving USD/CAD room to further decline. Looking at both charts, we can see the potential for the next move on the H4 timeframe. There is potential for further movement on top of the current strong move. As shown on the chart, the rally must first break above the 150 SMA line to signal a bullish trend. I added a 50 Simple Moving Average (SMA) indicator to visualize the moving average over the past three days. The 100 SMA line is curving downward, indicating a downtrend. The price is still below the 150 SMA, which is also pointing downward. At this point, the rally is not large enough to warrant a buy position. Therefore, there are still factors to consider before making a decision.
