Market Analysis: GBP/USD Regains Strength While USD/CAD Dips Again

<img src="https://fxopen.com/blog/en/content/images/2024/02/gbp-usd.jpg" alt="Market Analysis: GBP/USD Regains Strength While USD/CAD Dips Again" /><p><em>GBP/USD started a fresh increase above the 1.2625 zone. USD/CAD is declining and trading below the 1.3415 support.</em></p><h2>Important Takeaways for GBP/USD and USD/CAD Analysis Today</h2><p>&#xB7; The British Pound is eyeing more gains above the 1.2755 resistance.</p><p>&#xB7; There was a break above a key bearish trend line with resistance near 1.2740 on the hourly chart of GBP/USD at FXOpen.</p><p>&#xB7; USD/CAD started a fresh decline after it failed to clear the 1.3465 resistance.</p><p>&#xB7; There is a short-term connecting bullish trend line forming with support near 1.3368 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 formed a base above the 1.2625 level. The British Pound started a decent increase above the 1.2665 resistance zone against the US Dollar, as mentioned in the <a href="https://fxopen.com/blog/en/aj-market-analysis-gbp-usd-recovers-while-eur-gbp-dives-below-support/">previous analysis</a>.</p><p>The pair gained strength above the 1.2690 level. The bulls even pushed the pair above the 1.2725 level and the 50-hour simple moving average. More importantly, there was a break above a key bearish trend line with resistance near 1.2740.</p><figure><img src="https://fxopen.com/blog/en/content/images/2024/02/gbpusd0202.png" alt="Market Analysis: GBP/USD Regains Strength While USD/CAD Dips Again" loading="lazy" width="2000" height="1099" srcset="https://fxopen.com/blog/en/content/images/size/w600/2024/02/gbpusd0202.png 600w, https://fxopen.com/blog/en/content/images/size/w1000/2024/02/gbpusd0202.png 1000w, https://fxopen.com/blog/en/content/images/size/w1600/2024/02/gbpusd0202.png 1600w, https://fxopen.com/blog/en/content/images/size/w2400/2024/02/gbpusd0202.png 2400w" sizes="(min-width: 720px) 720px" /></figure><p>The pair tested the 1.2755 zone and is currently consolidating gains. If there is a downside correction, the pair could test the same trend line at 1.2740.</p><p>The first major support sits at the 23.6% Fib retracement level of the upward move from the 1.2625 swing low to the 1.2755 high. The next major support is 1.2690 and the 50-hour simple moving average.</p><p>The 50% Fib retracement level of the upward move from the 1.2625 swing low to the 1.2755 high is also at 1.2690. If there is a break below 1.2690, the pair could extend the decline. The next key support is near the 1.2665 level. Any more losses might call for a test of the 1.2625 support.</p><p>Conversely, the bulls might aim for more gains. The RSI moved above the 65 level on the GBP/USD chart and the pair is now approaching a major hurdle at 1.2755. An upside break above the 1.2755 zone could send the pair toward 1.2800. Any more gains might open the doors for a test of 1.2850.</p><h2>USD/CAD Technical Analysis</h2><p>On the hourly chart of USD/CAD at FXOpen, the pair climbed toward the 1.3440 resistance zone before the bears appeared. The US Dollar formed a high near 1.3642 and recently declined below the 1.3415 support against the Canadian Dollar.</p><p>There was also a close below the 50-hour simple moving average and 1.3390. The bulls are now active near the 1.3370 level. There is also a short-term connecting bullish trend line forming with support near 1.3368.</p><figure><img src="https://fxopen.com/blog/en/content/images/2024/02/usdcad0202.png" alt="Market Analysis: GBP/USD Regains Strength While USD/CAD Dips Again" loading="lazy" width="2000" height="1099" srcset="https://fxopen.com/blog/en/content/images/size/w600/2024/02/usdcad0202.png 600w, https://fxopen.com/blog/en/content/images/size/w1000/2024/02/usdcad0202.png 1000w, https://fxopen.com/blog/en/content/images/size/w1600/2024/02/usdcad0202.png 1600w, https://fxopen.com/blog/en/content/images/size/w2400/2024/02/usdcad0202.png 2400w" sizes="(min-width: 720px) 720px" /></figure><p>The first major support is near 1.3360. A close below the 1.3360 level might trigger a strong decline. In the stated case, USD/CAD might test 1.3300. Any more losses may possibly open the doors for a drop toward the 1.3250 support.</p><p>If there is a fresh increase, the pair could face resistance near the 23.6% Fib retracement level of the downward move from the 1.3464 swing high to the 1.3367 low.</p><p>The next key resistance on the USD/CAD chart is near the 50-hour simple moving average at 1.3415. The 50% Fib retracement level of the downward move from the 1.3464 swing high to the 1.3367 low is also at 1.3415.</p><p>If there is an upside break above 1.3415, the pair could rise toward the 1.3440 resistance. The next major resistance is near the 1.3465 level, above which it could rise steadily toward the 1.3500 resistance zone.</p>