Market Analysis: GBP/USD Consolidates Gains, USD/CAD Faces Hurdle

GBP/USD is showing positive signs above the 1.2540 resistance. USD/CAD is struggling and might decline further below the 1.3310 support.

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

· The British Pound started a strong increase above the 1.2440 resistance zone.

· There is a key bullish trend line forming with support near 1.2540 on the hourly chart of GBP/USD at FXOpen.

· USD/CAD is correcting losses from the 1.3310 support zone.

· There is a major bearish trend line forming with resistance near 1.3350 on the hourly chart at FXOpen.

GBP/USD Technical Analysis

On the hourly chart of GBP/USD at FXOpen, the pair started a major increase from the 1.2370 zone. The British Pound climbed above the 1.2440 resistance against the US Dollar.

The upward move gained pace above the 1.2500 resistance and the 50-hour simple moving average. Finally, it broke the 1.2540 resistance and traded toward 1.2600. A high is formed near 1.2590 and the pair is now consolidating gains.

Initial support sits near a key bullish trend line at 1.2540 and the 50-hour simple moving average. It is close to the 23.6% Fib retracement level of the upward move from the 1.2395 swing low to the 1.2590 high.

The next major support sits at 1.2500 or the 50% Fib retracement level of the upward move from the 1.2395 swing low to the 1.2590 high, where the bulls might take a stand. If there is a downside break, GBP/USD might test the 1.2440 support.

Immediate resistance is near the 1.2590 level. The first major resistance on the GBP/USD chart is near the 1.2600 level. The next major resistance is near the 1.2620 level. Any more gains could lead the pair toward the 1.2650 resistance in the near term.

USD/CAD Technical Analysis

On the hourly chart of USD/CAD at FXOpen, the pair failed to climb above the 1.3450 resistance. The US Dollar started a major decline below the 1.3400 level against the Canadian Dollar.

The pair gained bearish momentum below the 1.3370 support and the 50-hour simple moving average. A low is formed near 1.3313 and the pair is now attempting an upside correction. It is now consolidating near the 1.3350 resistance and the 23.6% Fib retracement level of the downward move from the 1.3461 swing high to the 1.3312 low.

There is also a major bearish trend line forming with resistance near 1.3350 on the same USD/CAD chart. The next major resistance is the 50% Fib retracement level of the downward move from the 1.3461 swing high to the 1.3312 low at 1.3390.

A close above the 1.3390 level might send the pair toward the 1.3450 level. Any more gains could open the doors for a test of the 1.3500 level.

On the downside, the pair is likely to find bids near 1.3335. The next major support is near the 1.3310 level. A downside break below the 1.3310 support level could push the pair further lower. The next major support is near the 1.3260 zone, below which the pair might revisit the 1.3220 level.