Market Analysis: GBP/USD Retreats From Highs, USD/CAD Grinds Higher

FXOpen

GBP/USD declined below the 1.2715 support zone. USD/CAD is rising and might aim for more gains above the 1.3330 resistance.

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

  • The British Pound started a fresh decline below the 1.2715 support zone.
  • There is a key bearish trend line forming with resistance near 1.2680 on the hourly chart of GBP/USD at FXOpen.
  • USD/CAD is showing positive signs above the 1.3260 support zone.
  • There was a break above a major bearish trend line with resistance near 1.3260 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 1.2820 zone. The British Pound traded below the 1.2715 support to move further into a bearish zone against the US Dollar.

The pair even traded below 1.2680 and the 50-hour simple moving average. Finally, the bulls appeared near the 1.2610 level. A low was formed near 1.2610 and the pair is now attempting a recovery wave.

Immediate resistance on the upside is near the 23.6% Fib retracement level of the downward move from the 1.2827 swing high to the 1.2610 low at 1.2660. The first major resistance is near a key bearish trend line at 1.2680 or the 50-hour simple moving average.

A close above the 1.2680 resistance might spark a steady upward move. The next major resistance is near the 50% Fib retracement level of the downward move from the 1.2827 swing high to the 1.2610 low at 1.2715. Any more gains could lead the pair toward the 1.2820 resistance in the near term.

Initial support sits near 1.2610. The next major support is at 1.2565, below which there is a risk of another sharp decline. In the stated case, the pair could drop towards 1.2500.

USD/CAD Technical Analysis

On the hourly chart of USD/CAD at FXOpen, the pair formed a strong support above the 1.3175 level. The US Dollar started a fresh increase above the 1.3220 resistance against the Canadian Dollar.

There was a break above a major bearish trend line with resistance near 1.3260. The pair cleared the 50-hour simple moving average and climbed above 1.3300. There was a move above the 61.8% Fib retracement level of the main decline from the 1.3371 swing high to the 1.3177 low.

It is now consolidating near the 76.4% Fib retracement level of the main decline from the 1.3371 swing high to the 1.3177 low. Initial resistance sits near the 1.3330 zone.

A clear upside break above 1.3330 could start another steady increase. The next major resistance is the 1.3370 level. A close above the 1.3370 level might send the pair towards the 1.3850 level. Any more gains could open the doors for a test of the 1.3940 level.

Initial support is near the 50-hour simple moving average and 1.3260. The next major support is near 1.3220 on the same USD/CAD chart.

The main support sits near 1.3175. A downside break below this level could push the pair further lower. The next major support is near the 1.3140 support zone, below which the pair might visit 1.3080.

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