Market Analysis: GBP/USD Regains Strength While USD/CAD Weakens

FXOpen

GBP/USD started a fresh increase above the 1.2370 zone. USD/CAD is declining and trading below the 1.3730 support.

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

· The British Pound is eyeing a fresh increase above the 1.2500 resistance.

· There was a break above a key bearish trend line with resistance near 1.2430 on the hourly chart of GBP/USD at FXOpen.

· USD/CAD started a fresh decline after it broke the 1.3840 resistance.

· There was a break below a major bullish trend line with support near 1.3730 on the hourly chart at FXOpen.

GBP/USD Technical Analysis

On the hourly chart of GBP/USD at FXOpen, the pair formed a base above the 1.2185 level. The British Pound started a decent increase above the 1.2250 resistance zone against the US Dollar.

The pair gained strength above the 1.2300 level. The bulls even pushed the pair above the 1.2370 level and the 50-hour simple moving average and 1.2120. The pair cleared the 50% Fib retracement level of the downward move from the 1.2505 swing high to the 1.2373 low.

There was a break above a key bearish trend line with resistance near 1.2430. It is now trading above the 76.4% Fib retracement level of the downward move from the 1.2505 swing high to the 1.2373 low.

The RSI moved above the 65 level on the GBP/USD chart and the pair is now approaching a major hurdle at 1.2500. An upside break above the 1.2500 zone could send the pair toward 1.2550. Any more gains might open the doors for a test of 1.2620.

On the downside, the pair might find support near the 50-hour simple moving average at 1.2430. The next major support is 1.2370.

If there is a break below 1.2370, the pair could extend the decline. The next key support is near the 1.2300 level. Any more losses might call for a test of the 1.2185 support.

USD/CAD Technical Analysis

On the hourly chart of USD/CAD at FXOpen, the pair climbed toward the 1.3775 resistance zone before the bears appeared. The US Dollar formed a high near 1.3776 and recently declined below the 1.3730 support against the Canadian Dollar.

There was a break below a major bullish trend line with support near 1.3730. The pair declined below the 61.8% Fib retracement level of the upward move from the 1.3654 swing low to the 1.3775 high.

There was also a close below the 50-hour simple moving average and 1.3700. Immediate support is near the 76.4% Fib retracement level of the upward move from the 1.3654 swing low to the 1.3775 high at 1.3685.

The first major support is near 1.3665. A close below the 1.3665 level might trigger a strong decline. In the stated case, USD/CAD might test 1.3620. Any more losses may possibly open the doors for a drop toward the 1.3550 support.

If there is a fresh increase, the pair could face resistance near the 50-hour simple moving average at 1.3730. The next key resistance on the USD/CAD chart is 1.3775. If there is an upside break above 1.3775, the pair could rise toward the 1.3840 resistance.

The next major resistance is near the 1.3880 level, above which it could rise steadily toward the 1.3950 resistance zone.

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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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