GBP/USD is attempting a recovery wave from 1.3325. USD/CAD is showing positive signs and might aim for more gains above 1.3960.
Important Takeaways for GBP/USD and USD/CAD Analysis Today
- The British Pound started a recovery wave above 1.3370 and 1.3400.
- There was a break above a key bearish trend line with resistance near 1.3390 on the hourly chart of GBP/USD at FXOpen.
- USD/CAD rallied above 1.3880 and 1.3920 before the bears appeared.
- There is a connecting bullish trend line forming with support at 1.3915 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 1.3530 after a decent increase. The British Pound traded below 1.3450 to again move into a short-term bearish zone against the US Dollar.
The pair even traded below 1.3400 and the 50-hour simple moving average. Finally, the bulls appeared near 1.3325. A low was formed near 1.3323 and the pair is now attempting a short-term recovery wave.
There was a fresh upside above 1.3370 and the 23.6% Fib retracement level of the downward move from the 1.3528 swing high to the 1.3323 low. More importantly, there was a break above a key bearish trend line with resistance near 1.3390.
The pair is now showing positive signs above 1.3420. Immediate resistance on the upside is near the 61% Fib retracement at 1.3450. The first major hurdle for the bulls on the GBP/USD chart is 1.3480.
A close above 1.3480 might spark a decent increase. The next stop for the bulls might be 1.3530. Any more gains could lead the pair toward 1.3620 in the near term. Initial support sits near the 50-hour simple moving average at 1.3390.
The next key area of interest might be 1.3370, below which there is a risk of another sharp decline. In the stated case, the pair could drop toward 1.3325.
USD/CAD Technical Analysis
On the hourly chart of USD/CAD at FXOpen, the pair formed a strong support base above the 1.3770 level. The US Dollar started a fresh increase above 1.3820 against the Canadian Dollar.
The pair cleared the 50-hour simple moving average and climbed above 1.3900. Finally, it tested the 1.3960 zone before the bears appeared. The pair traded below 1.3940 and the 50-hour simple moving average.
Initial support is near a connecting bullish trend line at 1.3915. It coincides with the 23.6% Fib retracement level of the upward move from the 1.3768 swing low to the 1.3958 high.
A downside break below the trend line might send the pair toward 1.3885. The next major area on the same USD/CAD chart could be the 50% Fib retracement at 1.3865. A close below 1.3865 could push the pair further lower. In the stated case, the bears might aim for a test of 1.3815.
On the upside, initial resistance sits near 1.3930 and the 50-hour simple moving average. The main breakout zone could be 1.3960. A clear upside break above 1.3960 could start another steady increase. The next major stop for the bulls might be 1.4000. Any more gains could open the doors for a test of 1.4050.
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