Market Analysis: GBP/USD Trades Sideways, USD/CAD Rally Still Looks Strong

GBP/USD is attempting a consolidation phase above 1.33500. USD/CAD is showing positive signs and might aim for more gains above 1.3725.

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

• The British Pound started a recovery wave above 1.3515 and 1.3550.
• There is a key bearish trend line forming with resistance near 1.3620 on the hourly chart of GBP/USD at FXOpen.
• USD/CAD rallied above 1.3650 and 1.3680 before the bears appeared.
• There was a break above a bearish trend line with resistance at 1.3695 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 1.3635 after a decent increase. The British Pound traded below 1.3600 to again move into a short-term bearish zone against the US Dollar.

The pair even traded below 1.3580 and the 50-hour simple moving average. Finally, the bulls appeared near 1.3550. A low was formed near 1.3547, and the pair is now attempting a short-term recovery wave.

There was a fresh upside above 1.3580 and the 50% Fib retracement level of the downward move from the 1.3636 swing high to the 1.3547 low. The pair is now showing positive signs above 1.3550. Immediate resistance on the upside is near the 61.8% Fib retracement level at 1.3600 or the 50-hour simple moving average.

The first major hurdle for the bulls on the GBP/USD chart is near a bearish trend line at 1.3620. A close above 1.3620 might spark a decent increase. The next stop for the bulls might be 1.3655. Any more gains could lead the pair toward 1.3710 in the near term.

Initial support sits at 1.3550. The next key area of interest might be 1.3515, below which there is a risk of another sharp decline. In the stated case, the pair could drop toward 1.3450.

USD/CAD Technical Analysis

On the hourly chart of USD/CAD at FXOpen, the pair formed a strong support base above the 1.3580 level. The US Dollar started a fresh increase above 1.3635 against the Canadian Dollar.

The pair cleared the 50-hour simple moving average, climbed above 1.3650, and surpassed a bearish trend line at 1.3695. The last swing high was formed at 1.3723, and the pair is now showing positive signs above the 23.6% Fib retracement level of the upward move from the 1.3579 swing low to the 1.3723 high.

On the upside, Initial resistance sits near 1.3725. The main breakout zone could be 1.3740. A clear upside break above 1.3740 could start another steady increase.

The next major stop for the bulls might be 1.3800. Any more gains could open the doors for a test of 1.4000. If there is a pullback, the pair could find bids near 1.3680 or the 50-hour simple moving average. A downside break below 1.3680 might send the pair toward the 50% Fib retracement at 1.3650.

The next major area on the same USD/CAD chart could be 1.3580. A close below 1.3580 could push the pair further lower. In the stated case, the bears might aim for a test of 1.3500.

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