Market Analysis: GBP/USD Nosedives While USD/CAD Aims Higher

GBP/USD is gaining pace below 1.2300. USD/CAD is rising and might aim for a move above the 1.3520 resistance zone.

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

· The British Pound started a fresh decline below the 1.2500 support zone.

· There is a key bearish trend line forming with resistance near 1.2260 on the hourly chart of GBP/USD at FXOpen.

· USD/CAD is showing positive signs above the 1.3400 support zone.

· There is a major bullish trend line forming with support near 1.3450 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 1.2500 zone. The British Pound traded below the 1.2325 support to move into further a bearish zone against the US Dollar, as mentioned in the previous analysis.

The pair even traded below 1.2275 and the 50-hour simple moving average. Finally, the bulls appeared near the 1.2230 level. A low was formed near 1.2230 and the pair is now consolidating losses with bearish signs.

Immediate resistance on the upside is near a key bearish trend line at 1.2260. The first major resistance on the GBP/USD chart is near the 23.6% Fib retracement level of the downward move from the 1.2421 swing high to the 1.2230 low at 1.2275 and the 50-hour simple moving average.

A close above the 1.2275 resistance might spark a decent recovery wave. The next major resistance is near the 50% Fib retracement level of the downward move from the 1.2421 swing high to the 1.2230 low at 1.2325. Any more gains could lead the pair toward the 1.2375 resistance in the near term.

Initial support sits near 1.2230. The next major support sits at 1.2200, below which there is a risk of another sharp decline. In the stated case, the pair could drop toward 1.2120.

USD/CAD Technical Analysis

On the hourly chart of USD/CAD at FXOpen, the pair formed a strong support base above the 1.3400 level. The US Dollar started a fresh increase above the 1.3450 resistance against the Canadian Dollar.

The pair cleared the 50-hour simple moving average and climbed above 1.3500. Finally, it tested the 1.3520 zone. A high was formed near 1.3523 before there was a drop toward 1.3425. The pair traded as low as 1.3423 and it is again moving higher.

There was a move above the 50% Fib retracement level of the downside correction from the 1.3523 swing high to the 1.3423 low. There is also a major bullish trend line forming with support near 1.3450.

Initial resistance sits near the 61.8% Fib retracement level of the downside correction from the 1.3523 swing high to the 1.3423 low at 1.3480. A clear upside break above 1.3480 could start another steady increase.

The next major resistance is the 1.3520 level. A close above the 1.3520 level might send the pair toward the 1.3580 level. Any more gains could open the doors for a test of the 1.3640 level.

Conversely, the pair could start another decline. Initial support is near the 1.3450 level and a major bullish trend line on the same USD/CAD chart. The next major support is near 1.3425.

The main support sits near 1.3400. A downside break below the 1.3400 level could push the pair further lower. The next major support is near the 1.3365 support zone, below which the pair might visit 1.3320.