Market Analysis: GBP/USD Turns Red While USD/CAD Climbs Higher

GBP/USD is showing bearish signs below 1.2700. USD/CAD is rising and might gain pace above the 1.3500 resistance zone.

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

· The British Pound started a fresh decline from the 1.2800 resistance zone.

· There is a key bearish trend line forming with resistance near 1.2700 on the hourly chart of GBP/USD at FXOpen.

· USD/CAD is rising steadily from the 1.3400 support zone.

· There is a major bullish trend line forming with support near 1.3450 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 1.2800 zone. The British Pound traded below the 1.2740 support to move into a bearish zone against the US Dollar.

The pair even traded below 1.2700 and the 50-hour simple moving average. Finally, the bulls appeared near the 1.2665 level. A low is formed near 1.2665 and the pair is now consolidating losses. There is also a key bearish trend line forming with resistance near 1.2700.

The trend line is near the 23.6% Fib retracement level of the downward move from the 1.2818 swing high to the 1.2665 low. The first major resistance on the GBP/USD chart is near 1.2740.

The 50% Fib retracement level of the downward move from the 1.2818 swing high to the 1.2665 low is also near 1.2740. The next major resistance is near the 1.2800 level. Any more gains could lead the pair toward the 1.2880 resistance in the near term.

Initial support sits near 1.2665. The next major support sits at 1.2650 or 1.2640, below which there is a risk of a sharp decline. In the stated case, the pair could drop toward 1.2550.

USD/CAD Technical Analysis

On the hourly chart of USD/CAD at FXOpen, the pair formed a strong support base above the 1.3370 level. The US Dollar started a decent increase above the 1.3400 resistance against the Canadian Dollar.

The pair cleared the 50-hour simple moving average to move into a positive zone. There was a close above the 50% Fib retracement level of the downward move from the 1.3501 swing high to the 1.3372 low.

It is now facing resistance near the 76.4% Fib retracement level of the downward move from the 1.3501 swing high to the 1.3372 low at 1.3470. A clear upside break above 1.3470 could start another steady increase.

The next major resistance is the 1.3500 level. A close above the 1.3500 level might send the pair toward the 1.3550 level. Any more gains could open the doors for a test of the 1.3620 level.

Conversely, the pair could start a downside correction. Initial support is near the 1.3450 level and connecting bullish trend line on the same USD/CAD chart. The next major support is near the 50-hour simple moving average at 1.3440.

Any more losses might send the pair toward the 1.3400 pivot level. A downside break below the 1.3400 level could push the pair further lower. The next major support is near the 1.3370 support zone, below which the pair might visit 1.3320.