Market Analysis: GBP/USD Attempts Recovery, USD/CAD Maintains Bullish Strength

GBP/USD is attempting a recovery wave from 1.3035. USD/CAD is showing positive signs and might aim for more gains above 1.4130.

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

• The British Pound started a recovery wave above 1.3050 and 1.3080.
• There is a key bearish trend line forming with resistance near 1.3110 on the hourly chart of GBP/USD at FXOpen.
• USD/CAD rallied above 1.4000 and 1.4050 before the bears appeared.
• There is a connecting bullish trend line forming with support at 1.4085 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 1.3220 after a decent increase. The British pound fell below 1.3150, re-entering a short-term bearish zone against the US dollar.

The pair even traded below 1.3050 and the 50-hour simple moving average. Finally, the bulls appeared near 1.3035. A low was formed near 1.3037 and the pair is now attempting a short-term recovery wave.

There was a fresh upside above 1.3050 and the 23.6% Fib retracement level of the downward move from the 1.3215 swing high to the 1.3037 low. The pair is now showing positive signs above 1.3080. Immediate resistance is near a bearish trend line at 1.3110.

The first major hurdle for the bulls on the GBP/USD chart is 1.3125 and the 50% Fib retracement. A close above 1.3125 might spark a decent increase. The next stop for the bulls might be 1.3175. Any more gains could lead the pair toward 1.3215 in the near term.

Initial support sits near the 50-hour simple moving average at 1.3080. The next key area of interest might be 1.3035, below which there is a risk of another sharp decline. In the stated case, the pair could drop toward 1.2965.

USD/CAD Technical Analysis

On the hourly chart of USD/CAD at FXOpen, the pair formed a strong support base above the 1.3970 level. The US Dollar started a fresh increase above 1.4000 against the Canadian Dollar.

The pair cleared the 50-hour simple moving average and climbed above 1.4050. Finally, it tested the 1.4130 zone before the bears appeared. The pair traded below the 23.6% Fib retracement level of the upward move from the 1.3971 swing low to the 1.4130 high.

Initial support is near a connecting bullish trend line at 1.4085 and the 50-hour simple moving average. A downside break below the trend line might send the pair toward 1.4050.

The next major area on the USD/CAD chart could be the 76.4% Fib retracement at 1.4010. A close below 1.4010 could push the pair further lower. In the stated case, the bears might aim for a test of 1.3970.

On the upside, initial resistance sits near 1.4105. The main breakout zone could be 1.4130. A clear upside break above 1.4130 could start another steady increase. The next major stop for the bulls might be 1.4200. Any more gains could open the doors for a test of 1.4250.