Market Analysis: GBP/USD Could Recover While USD/CAD Trims Gains

<img src="https://images.unsplash.com/photo-1574641820089-d431bff40336?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wxMTc3M3wwfDF8c2VhcmNofDJ8fHBvdW5kfGVufDB8fHx8MTY5NDQxODQ4OHww&amp;ixlib=rb-4.0.3&amp;q=80&amp;w=2000" alt="Market Analysis: GBP/USD Could Recover While USD/CAD Trims Gains" /><p><em>GBP/USD retested the 1.2450 support and is now correcting losses. USD/CAD is correcting gains and trading below the 1.3655 support.</em></p><h2>Important Takeaways for GBP/USD and USD/CAD Analysis Today</h2><p>&#xB7; The British Pound is eyeing a fresh increase above the 1.2580 resistance.</p><p>&#xB7; There is a key bearish trend line forming with resistance near 1.2550 on the hourly chart of GBP/USD at FXOpen.</p><p>&#xB7; USD/CAD declined below the 1.3655 and 1.3615 support levels.</p><p>&#xB7; A connecting bearish trend line is forming with resistance near 1.3615 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 1.2700 resistance zone. The British Pound traded below the 1.2550 support to enter a bearish zone against the US Dollar, <a href="https://fxopen.com/blog/en/aj-market-analysis-gbp-usd-and-eur-gbp-show-signs-of-weakness/">as discussed</a> in the previous analysis.</p><p>Finally, the bulls appeared near the 1.2450 zone. The pair is now attempting a recovery wave above the 50-hour simple moving average and 1.2480. There was a break above the 23.6% Fib retracement level of the downward move from the 1.2642 swing high to the 1.2447 low.</p><figure><img src="https://fxopen.com/blog/en/content/images/2023/09/gbpusd–17-.png" alt="Market Analysis: GBP/USD Could Recover While USD/CAD Trims Gains" loading="lazy" width="2000" height="1099" srcset="https://fxopen.com/blog/en/content/images/size/w600/2023/09/gbpusd–17-.png 600w, https://fxopen.com/blog/en/content/images/size/w1000/2023/09/gbpusd–17-.png 1000w, https://fxopen.com/blog/en/content/images/size/w1600/2023/09/gbpusd–17-.png 1600w, https://fxopen.com/blog/en/content/images/size/w2400/2023/09/gbpusd–17-.png 2400w" sizes="(min-width: 720px) 720px" /></figure><p>The RSI moved above the 50 level on the GBP/USD chart and the pair is now showing a few positive signs. Immediate resistance is forming near a key bearish trend line at 1.2550 and the 50% Fib retracement level of the downward move from the 1.2642 swing high to the 1.2447 low.</p><p>The next resistance is near 1.2580. An upside break above the 1.2580 zone could send the pair toward 1.2655. Any more gains might open the doors for a test of 1.2700.</p><p>On the downside, initial support is near the 1.2480 area. The next major support is 1.2450. If there is a break below 1.2450, the pair could extend its decline. The next key support is near the 1.2400 level. Any more losses might call for a test of the 1.2345 support.</p><h2>USD/CAD Technical Analysis</h2><p>On the hourly chart of USD/CAD at FXOpen, the pair started a fresh decline from the 1.3700 resistance zone. The US Dollar gained bearish momentum below the 1.3655 support against the Canadian Dollar.</p><p>There was also a close below the 50-hour simple moving average and 1.3615. It seems like the pair is now moving lower toward the 1.3585 support. If there is a recovery wave, the pair could face resistance near a connecting bearish trend line at 1.3615.</p><figure><img src="https://fxopen.com/blog/en/content/images/2023/09/usdcad–6-.png" alt="Market Analysis: GBP/USD Could Recover While USD/CAD Trims Gains" loading="lazy" width="2000" height="1099" srcset="https://fxopen.com/blog/en/content/images/size/w600/2023/09/usdcad–6-.png 600w, https://fxopen.com/blog/en/content/images/size/w1000/2023/09/usdcad–6-.png 1000w, https://fxopen.com/blog/en/content/images/size/w1600/2023/09/usdcad–6-.png 1600w, https://fxopen.com/blog/en/content/images/size/w2400/2023/09/usdcad–6-.png 2400w" sizes="(min-width: 720px) 720px" /></figure><p>The trend line coincides with the 23.6% Fib retracement level of the recent decline from the 1.3694 swing high to the 1.3594 low. The next key resistance on the USD/CAD chart is near the 50-hour simple moving average at 1.3655.</p><p>The 61.85 Fib retracement level of the recent decline from the 1.3694 swing high to the 1.3594 low is also near 1.3655. If there is an upside break above 1.3655, the pair could rise toward the 1.3700 resistance.</p><p>The next major resistance is near the 1.3720 level, above which it could rise steadily toward the 1.3785 resistance zone. Conversely, it could continue to move down.</p><p>Immediate support is near 1.3585. The first major support is near 1.3560. A close below the 1.3560 level might trigger a strong decline. In the stated case, USD/CAD might test 1.3500. Any more losses may possibly open the doors for a drop toward the 1.3450 support.</p>