GBP/USD Bulls Struggle While USD/CAD Regains Strength

GBP/USD declined below the 1.2550 support zone. USD/CAD is rising and might aim for more gains above the 1.3760 resistance.

Important Takeaways for GBP/USD and USD/CAD Analysis Today

· The British Pound started a fresh decline from the 1.2635 resistance zone.

· There is a key bearish trend line forming with resistance at 1.2500 on the hourly chart of GBP/USD at FXOpen.

· USD/CAD is showing positive signs above the 1.3685 support zone.

· There is a major bullish trend line forming with support at 1.3720 on the hourly chart at FXOpen.

GBP/USD Technical Analysis

On the hourly chart of GBP/USD at FXOpen, the pair started a fresh decline from the 1.2635 zone. The British Pound traded below the 1.2550 support to move into further a bearish zone against the US Dollar.

The pair even traded below 1.2500 and the 50-hour simple moving average. Finally, the bulls appeared near the 1.2465 level. A low was formed at 1.2467 and the pair recently attempted a recovery wave. The pair climbed above the 1.2485 level.

It tested the 23.6% Fib retracement level of the downward move from the 1.2594 swing high to the 1.2467 low. However, the bears were active near 1.2500.

Immediate resistance on the upside is near a key bearish trend line at 1.2500. The first major resistance is near the 50% Fib retracement level of the downward move from the 1.2594 swing high to the 1.2467 low at 1.2530.

A close above the 1.2530 resistance might spark a steady upward move. The next major resistance is near the 1.2595 zone. Any more gains could lead the pair toward the 1.2635 resistance in the near term.

Initial support on the GBP/USD chart sits at 1.2465. The next major support sits at 1.2440, below which there is a risk of another sharp decline. In the stated case, the pair could drop toward 1.2350.

USD/CAD Technical Analysis

On the hourly chart of USD/CAD at FXOpen, the pair formed a strong support base above the 1.3600 level. The US Dollar started a fresh increase above the 1.3645 resistance against the Canadian Dollar.

The bulls pushed the pair above the 1.3685 and 1.3720 levels. The pair cleared the 50-hour simple moving average and climbed above 1.3750. A high was formed at 1.3760 and the pair is now correcting gains.

There was a minor decline below the 23.6% Fib retracement level of the upward move from the 1.3609 swing low to the 1.3760 high. It is now consolidating near the 1.3720 zone. There is also a major bullish trend line forming with support at 1.3720.

Initial resistance sits near the 1.3735 zone. A clear upside break above 1.3735 could start another steady increase. The next major resistance is the 1.3760 level. A close above the 1.3760 level might send the pair toward the 1.3800 level. Any more gains could open the doors for a test of the 1.3850 level.

Initial support is near the 50-hour simple moving average and 1.3720. The next major support is near 1.3685 on the same USD/CAD chart.

The main support sits near the 76.4% Fib retracement level of the upward move from the 1.3609 swing low to the 1.3760 high at 1.3645. A downside break below the 1.3645 level could push the pair further lower. The next major support is near the 1.3610 support zone, below which the pair might visit 1.3500.