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

FXOpen

GBP/USD is attempting a recovery wave from 1.2600. USD/CAD is rising and might aim for a move above the 1.3580 resistance zone.

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

· The British Pound started a fresh decline from the 1.2700 resistance zone.

· There is a key bearish trend line forming with resistance near 1.2665 on the hourly chart of GBP/USD at FXOpen.

· USD/CAD is showing positive signs above the 1.3545 support zone.

· There is a contracting triangle forming with resistance near 1.3580 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 1.2700 zone. The British Pound traded below the 1.2650 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 1.2600 level. A low was formed near 1.2612 and the pair is now attempting a short-term recovery wave.

There was a fresh upside above the 1.2620 level. The pair climbed above the 23.6% Fib retracement level of the downward move from the 1.2681 swing high to the 1.2612 low.

Immediate resistance on the upside is near the 50% Fib retracement level of the downward move from the 1.2681 swing high to the 1.2612 low at 1.2650 and the 50-hour simple moving average. The first major resistance on the GBP/USD chart is near the 1.2665 level.

There is also a key bearish trend line forming with resistance near 1.2665. A close above the 1.2665 resistance might spark a decent recovery wave. The next major resistance is near the 1.2700 level. Any more gains could lead the pair toward the 1.2750 resistance in the near term.

Initial support sits near 1.2620. The next major support sits at 1.2610, below which there is a risk of another sharp decline. In the stated case, the pair could drop toward 1.2540.

USD/CAD Technical Analysis

On the hourly chart of USD/CAD at FXOpen, the pair formed a strong support base above the 1.3490 level. The US Dollar started a fresh increase above the 1.3530 resistance against the Canadian Dollar.

The pair cleared the 50-hour simple moving average and climbed above 1.3580. Finally, it tested the 1.3600 zone before there was a downside correction. The pair traded below the 1.3580 support zone.

It tested the 1.3545 support zone and the 50% Fib retracement level of the upward move from the 1.3485 swing low to the 1.3605 high.

Initial resistance sits near the 1.3580 level and the 50-hour simple moving average. There is also a contracting triangle forming with resistance near 1.3580. A clear upside break above 1.3580 could start another steady increase.

The next major resistance is the 1.3605 level. A close above the 1.3605 level might send the pair toward the 1.3650 level. Any more gains could open the doors for a test of the 1.3685 level.

Conversely, the pair could start another decline. Initial support is near the 1.3545 level on the same USD/CAD chart. The next major support is near 1.3530. A downside break below the 1.3530 level could push the pair further lower. The next major support is near the 1.3490 support zone, below which the pair might visit 1.3450.

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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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