Market Analysis: GBP/USD Correction Deepens While USD/CAD Refuses to Break

GBP/USD started a fresh decline below 1.3450. USD/CAD is consolidating gains and might aim for a fresh increase above 1.3900.

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

· The British Pound started another decline from 1.3500.

· There is a key bearish trend line forming with resistance at 1.3400 on the hourly chart of GBP/USD at FXOpen.

· USD/CAD is showing positive signs above the 1.3880 support zone.

· There is a key bullish trend line forming with support at 1.3890 on the hourly chart at FXOpen.

GBP/USD Technical Analysis

On the hourly chart of GBP/USD at FXOpen, the pair struggled to continue higher above 1.3500. The British Pound started a fresh decline and traded below 1.3450 against the US Dollar, as discussed in the previous analysis.

The pair even traded below 1.3400 and the 50-hour simple moving average. Finally, the bulls appeared near the 1.3340 level. The recent swing low was formed at 1.3339, and the pair is now consolidating losses.

Recently, there was a recovery wave above 1.3370 and the 23.6% Fib retracement level of the downward move from the 1.3494 swing high to the 1.3339 low.

However, the bears were active near the 1.3400 zone. Besides, there is a key bearish trend line forming with resistance at 1.3400. If there is a fresh decline, initial support on the GBP/USD chart sits at 1.3370. The next major area of interest could be 1.3340, below which there is a risk of another sharp decline. In the stated case, the pair could drop toward 1.3280.

Immediate hurdle on the upside is near 1.3400. The first major resistance is 1.3410. The main sell zone sits at 1.3460 and the 76.4% Fib retracement.

A close above 1.3460 might spark a steady upward move. The next stop for the bulls might be near 1.3500. Any more gains could lead the pair toward 1.3550 in the near term.

USD/CAD Technical Analysis

On the hourly chart of USD/CAD at FXOpen, the pair formed a strong base above 1.3850. The US Dollar started a fresh increase above 1.3880 and 1.3900 against the Canadian Dollar.

The bulls pushed the pair above the 1.3920 and 1.3925 levels. The pair cleared the 50-hour simple moving average and settled above 1.3880. A high was formed at 1.3928 and the pair is now consolidating gains.

There was a minor pullback below 1.3900, and the 23.6% Fib retracement level of the upward move from the 1.3854 swing low to the 1.3928 high.

Initial support is near a key bullish trend line at 1.3890 and the 50% Fib retracement. The next key breakdown zone could be 1.3880. The main hurdle for the bears might be 1.3870 on the same USD/CAD chart.

A downside break below the 1.3870 could push the pair further lower. The next key area of interest might be 1.3855, below which the pair might visit 1.3800.

If there is another increase, the pair might face hurdles near 1.3910. A clear upside break above 1.3910 could start another steady increase. In the stated case, the pair could test 1.3930. A close above 1.3930 might send the pair toward 1.3965. Any more gains could open the doors for a test of 1.4000.

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