Market Analysis: GBP/USD Attempts Recovery, USD/CAD Grinds Higher

<img src="https://images.unsplash.com/photo-1574641820089-d431bff40336?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wxMTc3M3wwfDF8c2VhcmNofDJ8fHBvdW5kJTIwfGVufDB8fHx8MTY5ODA0NDc1OHww&amp;ixlib=rb-4.0.3&amp;q=80&amp;w=2000" alt="Market Analysis: GBP/USD Attempts Recovery, USD/CAD Grinds Higher" /><p><em>GBP/USD is attempting a recovery wave from 1.2090. USD/CAD is rising and might aim for a move above the 1.3720 resistance zone.</em></p><h2>Important Takeaways for GBP/USD and USD/CAD Analysis Today</h2><p>&#xB7; The British Pound is struggling to gain pace for a move above the 1.2200 region.</p><p>&#xB7; There is a key bearish trend line forming with resistance near 1.2170 on the hourly chart of GBP/USD at FXOpen.</p><p>&#xB7; USD/CAD is showing positive signs above the 1.3670 support zone.</p><p>&#xB7; There is a bullish flag pattern forming with resistance near 1.3720 on the hourly chart at FXOpen.</p><h2>GBP/USD Technical Analysis</h2><p>On the hourly chart of GBP/USD at FXOpen, the pair started a fresh decline from the 1.2200 zone. The British Pound traded below the 1.2140 support to move into further a bearish zone against the US Dollar, <a href="https://fxopen.com/blog/en/aj-market-analysis-gbp-usd-restarts-decrease-eur-gbp-aims-higher/">as mentioned</a> in the previous analysis.</p><p>The pair even traded below 1.2115 and the 50-hour simple moving average. Finally, the bulls appeared near the 1.2090 level. A low was formed near 1.2093 and the pair is now attempting a short-term recovery wave.</p><figure><img src="https://fxopen.com/blog/en/content/images/2023/10/gbpusd–1-.png" alt="Market Analysis: GBP/USD Attempts Recovery, USD/CAD Grinds Higher" loading="lazy" width="2000" height="1099" srcset="https://fxopen.com/blog/en/content/images/size/w600/2023/10/gbpusd–1-.png 600w, https://fxopen.com/blog/en/content/images/size/w1000/2023/10/gbpusd–1-.png 1000w, https://fxopen.com/blog/en/content/images/size/w1600/2023/10/gbpusd–1-.png 1600w, https://fxopen.com/blog/en/content/images/size/w2400/2023/10/gbpusd–1-.png 2400w" sizes="(min-width: 720px) 720px" /></figure><p>There was a fresh upside above the 50-hour simple moving average. The pair climbed above the 50% Fib retracement level of the downward move from the 1.2191 swing high to the 1.2093 low.</p><p>Immediate resistance on the upside is near a key bearish trend line at 1.2170. It is close to the 76.4% Fib retracement level of the downward move from the 1.2191 swing high to the 1.2093 low. The first major resistance on the GBP/USD chart is near the 1.2190 level.</p><p>A close above the 1.2190 resistance might spark a decent recovery wave. The next major resistance is near the 1.2220 level. Any more gains could lead the pair toward the 1.2300 resistance in the near term.</p><p>Initial support sits near 1.2140. The next major support sits at 1.2115, below which there is a risk of another sharp decline. In the stated case, the pair could drop toward 1.2020.</p><h2>USD/CAD Technical Analysis</h2><p>On the hourly chart of USD/CAD at FXOpen, the pair formed a strong support base above the 1.3600 level. The US Dollar started a fresh increase above the 1.3670 resistance against the Canadian Dollar.</p><p>The pair cleared the 50-hour simple moving average and climbed above 1.3720. Finally, it tested the 1.3735 zone before there was a drop toward 1.3670. The pair traded as low as 1.3669 and it is again moving higher.</p><figure><img src="https://fxopen.com/blog/en/content/images/2023/10/usdcad-1.png" alt="Market Analysis: GBP/USD Attempts Recovery, USD/CAD Grinds Higher" loading="lazy" width="2000" height="1099" srcset="https://fxopen.com/blog/en/content/images/size/w600/2023/10/usdcad-1.png 600w, https://fxopen.com/blog/en/content/images/size/w1000/2023/10/usdcad-1.png 1000w, https://fxopen.com/blog/en/content/images/size/w1600/2023/10/usdcad-1.png 1600w, https://fxopen.com/blog/en/content/images/size/w2400/2023/10/usdcad-1.png 2400w" sizes="(min-width: 720px) 720px" /></figure><p>There was a move above the 50% Fib retracement level of the downside correction from the 1.3734 swing high to the 1.3669 low. There is also a bullish flag pattern forming with resistance near 1.3720.</p><p>Initial resistance sits near the 76.4% Fib retracement level of the downside correction from the 1.3734 swing high to the 1.3669 low at 1.3720. A clear upside break above 1.3720 could start another steady increase.</p><p>The next major resistance is the 1.3735 level. A close above the 1.3735 level might send the pair toward the 1.3800 level. Any more gains could open the doors for a test of the 1.3840 level.</p><p>Conversely, the pair could start another decline. Initial support is near the 1.3710 level on the same USD/CAD chart. The next major support is near 1.3670. A downside break below the 1.3670 level could push the pair further lower. The next major support is near the 1.3600 support zone, below which the pair might visit 1.3550.</p>