Market Analysis: GBP/USD Struggles To Recover, USD/CAD Holds Support

GBP/USD is struggling to recover above 1.2665. USD/CAD is holding gains above 1.3560 and might start another increase.

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

· The British Pound started a fresh decline from the 1.2720 resistance zone.

· There is a major bearish trend line forming with resistance near 1.2620 on the hourly chart of GBP/USD at FXOpen.

· USD/CAD is correcting gains from the 1.3640 resistance zone.

· There is a key bullish trend line forming with support near 1.3585 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 1.2720 zone. The British Pound traded below the 1.2665 support to move into further a bearish zone against the US Dollar, as mentioned in the previous analysis.

The pair even traded below 1.2620 and the 50-hour simple moving average. Finally, the bulls appeared near the 1.2550 level. A low was formed near 1.2547 and the pair is now consolidating losses. There was a minor recovery above the 23.6% Fib retracement level of the downward move from the 1.2732 swing high to the 1.2547 low.

Immediate resistance on the upside is near a major bearish trend line at 1.2620 and the 50-hour simple moving average. The first major resistance on the GBP/USD chart is near the 61.8% Fib retracement level of the downward move from the 1.2732 swing high to the 1.2547 low at 1.2665.

A close above the 1.2665 resistance might spark bullish moves. The next major resistance is near the 1.2720 level. Any more gains could lead the pair toward the 1.2800 resistance in the near term.

Initial support sits near 1.2550. The next major support sits at 1.2510 or 1.2500, below which there is a risk of another sharp decline. In the stated case, the pair could drop toward 1.2420.

USD/CAD Technical Analysis

On the hourly chart of USD/CAD at FXOpen, the pair formed a strong support base above the 1.3510 level. The US Dollar started a fresh increase above the 1.3560 resistance against the Canadian Dollar.

The pair cleared the 50-hour simple moving average to set the tone for a sustained upward move. Finally, the bears appeared near the 1.3640 zone.

A high was formed near 1.3639 and the pair recently corrected lower. It declined below the 23.6% Fib retracement level of the upward move from the 1.3507 swing low to the 1.3639 high. It is now trading above the 50-hour simple moving average.

There is also a key bullish trend line forming with support near 1.3585. If the pair stays above the trend line, it could start another increase.

Initial resistance sits at 1.3610. 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 1.3720 level. Any more gains could open the doors for a test of the 1.3800 level.

Conversely, the pair could continue to move down. Initial support is near the 1.3585 level and connecting bullish trend line on the same USD/CAD chart. The next major support is near the 61.8% Fib retracement level of the upward move from the 1.3507 swing low to the 1.3639 high at 1.3560.

A downside break below the 1.3560 level could push the pair further lower. The next major support is near the 1.3510 support zone, below which the pair might visit 1.3450.