Market Analysis: GBP/USD Turns Green While USD/CAD Eyes Fresh Increase

FXOpen

GBP/USD started a decent increase above the 1.2225 resistance. USD/CAD is recovering and might aim for a move toward the 1.3795 resistance.

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

· The British Pound climbed above the 1.2225 and 1.2315 resistance levels.

· There is a connecting bullish trend line forming with support near 1.2315 on the hourly chart of GBP/USD at FXOpen.

· USD/CAD declined toward the 1.3635 zone before the bulls took a stand.

· It broke a major bearish trend line with resistance near 1.3660 on the hourly chart at FXOpen.

GBP/USD Technical Analysis

On the hourly chart of GBP/USD at FXOpen, the pair found support near the 1.2100 zone. The British Pound formed a base and started a recovery wave above 1.2225 against the US Dollar.

The pair was able to clear the 1.2315 resistance and the 50-hour simple moving average. Finally, it spiked toward 1.2430. A high is formed near 1.2430 and the pair is now correcting gains. There was a move below the 23.6% Fib retracement level of the upward move from the 1.2097 swing low to the 1.2428 high.

The RSI moved below the 40 level on the GBP/USD chart and the pair is now approaching a major support at 1.2315. There is also a connecting bullish trend line forming with support near 1.2315.

A downside break below the trend line might send the pair toward the 61.8% Fib retracement level of the upward move from the 1.2097 swing low to the 1.2428 high at 1.2225. The next major support is 1.2100. Any more losses might call for a test of the 1.2000 support.

On the upside, the pair might face resistance near 1.2350. The next resistance is near 1.2385. An upside break above the 1.2385 zone could send the pair toward 1.2430. Any more gains might open the doors for a test of 1.2500.

USD/CAD Technical Analysis

On the hourly chart of USD/CAD at FXOpen, the pair rallied toward the 1.3900 resistance zone before the bears appeared. The US Dollar formed a high near 1.3899 and recently declined below the 1.3765 support against the Canadian Dollar.

The pair even tested the 1.3636 zone and recently started a recovery wave. It broke a major bearish trend line with resistance near 1.3660.

There was a move above the 50-hour simple moving average and the 23.6% Fib retracement level of the downward move from the 1.3900 swing high to the 1.3633 low. The pair is now showing positive signs and might aim for more upsides.

Immediate resistance is near the 50% Fib retracement level of the downward move from the 1.3900 swing high to the 1.3633 low at 1.3765. The next key resistance on the USD/CAD chart is 1.3795.

If there is an upside break above 1.3795, the pair could rise toward the 1.3900 resistance. The next major resistance is near the 1.3920 level, above which it could rise steadily toward the 1.4000 resistance zone.

If not, the pair might decline again. Immediate support is near the 50-hour simple moving average at 1.3685. The first major support is 1.3635. A close below the 1.3635 level might trigger a strong decline. In the stated case, USD/CAD might test 1.3550. Any more losses may possibly open the doors for a drop toward the 1.3500 support.

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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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