Market Analysis: GBP/USD Eyes Fresh Increase, USD/CAD Could Extend Losses

<img src="https://fxopen.com/blog/en/content/images/2023/06/gbp.jpg" alt="Market Analysis: GBP/USD Eyes Fresh Increase, USD/CAD Could Extend Losses" /><p><em>GBP/USD faced resistance near 1.2845 and started a downside correction. USD/CAD is struggling below 1.3210 and might decline further.</em></p><h2>Important Takeaways for GBP/USD and USD/CAD</h2><p>· The British Pound started a downside correction below the 1.2845 zone.</p><p>· There is a key bearish trend line forming with resistance near 1.2740 on the hourly chart of GBP/USD at FXOpen.</p><p>· USD/CAD declined below the 1.3210 and 1.3185 support levels.</p><p>· A connecting bearish trend line is forming with resistance near 1.3185 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 was able to climb above the 1.2800 resistance zone. However, the bears were active near the 1.2845 zone.</p><p>As a result, the pair started a downside correction below the 1.2780 and 1.2740 support levels. The pair even spiked below 1.2700 before the bulls appeared near 1.2690. A low is formed near 1.2684 and the pair is now consolidating losses.</p><figure><img src="https://fxopen.com/blog/en/content/images/2023/06/gbpusd–6-.png" alt="Market Analysis: GBP/USD Eyes Fresh Increase, USD/CAD Could Extend Losses" loading="lazy" width="2000" height="1099" srcset="https://fxopen.com/blog/en/content/images/size/w600/2023/06/gbpusd–6-.png 600w, https://fxopen.com/blog/en/content/images/size/w1000/2023/06/gbpusd–6-.png 1000w, https://fxopen.com/blog/en/content/images/size/w1600/2023/06/gbpusd–6-.png 1600w, https://fxopen.com/blog/en/content/images/size/w2400/2023/06/gbpusd–6-.png 2400w" sizes="(min-width: 720px) 720px" /></figure><p>There was a move above the 23.6% Fib retracement level of the downward move from the 1.2841 swing high to the 1.2684 low. Immediate resistance on the GBP/USD chart is forming near the 50-hour simple moving average at 1.2732.</p><p>The next resistance is near a key bearish trend line at 1.2740. An upside break above the 1.2740 zone, the pair could rise toward 1.2780. It coincides with the 61.8% Fib retracement level of the downward move from the 1.2841 swing high to the 1.2684 low.</p><p>Any more gains might open the doors for a test of 1.2845. On the downside, initial support is near the 1.2720 area. The next major support is near the 1.2690 level. If there is a break below 1.2690, the pair could extend its decline. The next key support is near the 1.2640 level. Any more losses might call for a test of the 1.2580 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 1.3240 resistance zone. The US Dollar gained bearish momentum below the 1.3210 support against the Canadian Dollar.</p><p>The bears were able to push the pair below the 50% Fib retracement level of the upward move from the 1.3138 swing low to the 1.3225 high. It is now trading below the 50-hour simple moving average.</p><figure><img src="https://fxopen.com/blog/en/content/images/2023/06/usdcad–2-.png" alt="Market Analysis: GBP/USD Eyes Fresh Increase, USD/CAD Could Extend Losses" loading="lazy" width="2000" height="1099" srcset="https://fxopen.com/blog/en/content/images/size/w600/2023/06/usdcad–2-.png 600w, https://fxopen.com/blog/en/content/images/size/w1000/2023/06/usdcad–2-.png 1000w, https://fxopen.com/blog/en/content/images/size/w1600/2023/06/usdcad–2-.png 1600w, https://fxopen.com/blog/en/content/images/size/w2400/2023/06/usdcad–2-.png 2400w" sizes="(min-width: 720px) 720px" /></figure><p>It is also showing bearish signs below the 76.4% Fib retracement level of the upward move from the 1.3138 swing low to the 1.3225 high. Immediate support is near the 1.3140 level. A close below the 1.3140 level might trigger a strong decline.</p><p>In the stated case, USD/CAD might test 1.3100. Any more losses may possibly open the doors for a drop toward the 1.3040 support.</p><p>On the upside, the pair is facing resistance near a connecting bearish trend line at 1.3185. If there is an upside break above the trend line, the pair could rise toward the 1.3210 resistance.</p><p>If the bulls pump USD/CAD above the 1.3210 resistance, there might be a decent increase toward the 1.3240 level. The next major resistance is near the 1.3280 level, above which it could rise steadily toward the 1.3335 resistance zone.</p>