Market Analysis: GBP/USD Dips While USD/CAD Could Extend Gains

<img src="https://images.unsplash.com/photo-1517232117795-40c9d8212a04?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wxMTc3M3wwfDF8c2VhcmNofDJ8fHBvdW5kfGVufDB8fHx8MTcwMjQ1MTUwMXww&amp;ixlib=rb-4.0.3&amp;q=80&amp;w=2000" alt="Market Analysis: GBP/USD Dips While USD/CAD Could Extend Gains" /><p><em>GBP/USD is moving lower from the 1.2650 resistance. USD/CAD is rising and might aim for more gains above the 1.3620 resistance.</em></p><h2>Important Takeaways for GBP/USD and USD/CAD Analysis Today</h2><p>· The British Pound started a fresh decline below the 1.2615 support zone.</p><p>· There is a key bearish trend line forming with resistance near 1.2565 on the hourly chart of GBP/USD at FXOpen.</p><p>· USD/CAD is showing positive signs above the 1.3580 support zone.</p><p>· There was a break above a major bearish trend line with resistance near 1.3585 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 1.2650 zone. The British Pound traded below the 1.2615 support to move into further a bearish zone against the US Dollar.</p><p>The pair even traded below 1.2565 and the 50-hour simple moving average. Finally, the bulls appeared near the 1.2515 level. A low was formed near 1.2514 and the pair is now attempting a recovery wave.</p><figure><img src="https://fxopen.com/blog/en/content/images/2023/12/GBPUSD1312.png" alt="Market Analysis: GBP/USD Dips While USD/CAD Could Extend Gains" loading="lazy" width="2000" height="1099" srcset="https://fxopen.com/blog/en/content/images/size/w600/2023/12/GBPUSD1312.png 600w, https://fxopen.com/blog/en/content/images/size/w1000/2023/12/GBPUSD1312.png 1000w, https://fxopen.com/blog/en/content/images/size/w1600/2023/12/GBPUSD1312.png 1600w, https://fxopen.com/blog/en/content/images/size/w2400/2023/12/GBPUSD1312.png 2400w" sizes="(min-width: 720px) 720px" /></figure><p>Immediate resistance on the upside is near a key bearish trend line at 1.2565 or the 50-hour simple moving average. It is close to the 50% Fib retracement level of the downward move from the 1.2615 swing high to the 1.2514 low.</p><p>The first major resistance on the GBP/USD chart is near the 76.4% Fib retracement level of the downward move from the 1.2615 swing high to the 1.2514 low at 1.2590.</p><p>A close above the 1.2590 resistance might spark a steady upward move. The next major resistance is near 1.2640. Any more gains could lead the pair toward the 1.2700 resistance in the near term.</p><p>Initial support sits near 1.2540. The next major support sits at 1.2515, below which there is a risk of another sharp decline. In the stated case, the pair could drop toward 1.2440.</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 1.3550 level. The US Dollar started a fresh increase above the 1.3575 resistance against the Canadian Dollar.</p><p>There was a break above a major bearish trend line with resistance near 1.3585. The pair cleared the 50-hour simple moving average and climbed above 1.3600. Finally, it tested the 1.3620 zone. A high was formed near 1.3618 before there was a downside correction.</p><figure><img src="https://fxopen.com/blog/en/content/images/2023/12/USDCAD1312.png" alt="Market Analysis: GBP/USD Dips While USD/CAD Could Extend Gains" loading="lazy" width="2000" height="1099" srcset="https://fxopen.com/blog/en/content/images/size/w600/2023/12/USDCAD1312.png 600w, https://fxopen.com/blog/en/content/images/size/w1000/2023/12/USDCAD1312.png 1000w, https://fxopen.com/blog/en/content/images/size/w1600/2023/12/USDCAD1312.png 1600w, https://fxopen.com/blog/en/content/images/size/w2400/2023/12/USDCAD1312.png 2400w" sizes="(min-width: 720px) 720px" /></figure><p>The pair dipped below the 1.3600 level and the 23.6% Fib retracement level of the upward move from the 1.3550 swing low to the 1.3620 high.</p><p>Initial support is near the 50-hour simple moving average and the 50% Fib retracement level of the upward move from the 1.3550 swing low to the 1.3620 high at 1.3580.</p><p>The next major support is near 1.3550 on the same USD/CAD chart. The main support sits near 1.3530. A downside break below the 1.3530 level could push the pair further lower. The next major support is near the 1.3480 support zone, below which the pair might visit 1.3420.</p><p>Initial resistance sits near the 1.3600 zone. A clear upside break above 1.3600 could start another steady increase. The next major resistance is the 1.3620 level. A close above the 1.3620 level might send the pair toward the 1.3680 level. Any more gains could open the doors for a test of the 1.3740 level.</p>