Market Analysis: GBP/USD Dives While USD/CAD Gains Bullish Pace

FXOpen

GBP/USD declined below the 1.2665 support zone. USD/CAD is rising and might aim for more gains above the 1.3610 resistance.

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

· The British Pound started a fresh decline from the 1.2800 resistance zone.

· There was a break below a key rising channel with support at 1.2630 on the hourly chart of GBP/USD at FXOpen.

· USD/CAD is showing positive signs above the 1.3555 support zone.

· There was a break above a major bearish trend line with resistance near 1.3575 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 1.2800 zone. The British Pound traded below the 1.2690 support to move into further a bearish zone against the US Dollar.

The pair even traded below 1.2665 and the 50-hour simple moving average. Finally, the bulls appeared near the 1.2580 level. A low was formed at 1.2575 and the pair recently attempted a recovery wave. The pair climbed above the 1.2600 level.

It cleared the 23.6% Fib retracement level of the downward move from the 1.2803 swing high to the 1.2575 low. However, the bears were active near 1.2665 and pushed the pair lower again.

There was a break below a key rising channel with support at 1.2630. Initial support on the GBP/USD chart sits at 1.2600. The next major support sits at 1.2575, below which there is a risk of another sharp decline. In the stated case, the pair could drop toward 1.2500.

Immediate resistance on the upside is near the 1.2665 level. The first major resistance is near the 50% Fib retracement level of the downward move from the 1.2803 swing high to the 1.2575 low at 1.2690.

A close above the 1.2690 resistance might spark a steady upward move. The next major resistance is near the 1.2750. Any more gains could lead the pair toward the 1.2800 resistance in the near term.

USD/CAD Technical Analysis

On the hourly chart of USD/CAD at FXOpen, the pair formed a strong support base above the 1.3445 level. The US Dollar started a fresh increase above the 1.3515 resistance against the Canadian Dollar.

The bulls pushed the pair above the 50% Fib retracement level of the main decline from the 1.3613 swing high to the 1.3552 low. There was a break above a major bearish trend line with resistance near 1.3575.

The pair cleared the 50-hour simple moving average and climbed above 1.3590. It is now consolidating near the 76.4% Fib retracement level of the main decline from the 1.3613 swing high to the 1.3552 low. Initial resistance sits near the 1.3610 zone.

A clear upside break above 1.3610 could start another steady increase. The next major resistance is the 1.3640 level. A close above the 1.3640 level might send the pair toward the 1.3700 level. Any more gains could open the doors for a test of the 1.3750 level.

Initial support is near the 50-hour simple moving average and 1.3575. The next major support is near 1.3555 on the same USD/CAD chart.

The main support sits near 1.3515. A downside break below the 1.3515 level could push the pair further lower. The next major support is near the 1.3455 support zone, below which the pair might visit 1.3400.

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This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

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