GBP/USD sell-off gathers pace
GBPUSD has continued to pull back, with the pair looking set to continue the wider downtrend.
A break below $1.2958 looks likely, upon which we would have proof that the downtrend continues given the creation of another lower low. Any rebound would have to break through $1.3173 to negate this bearish view.
USD/CAD wedge points to a short-term downside
USDCAD has been gradually declining lately, with the price trading within a falling wedge formation. With the price currently trading at the top end of this pattern, another move lower looks likely from here.
However, given that a wedge formation will typically provide a reversal breakout, there is a good chance that the ultimate resolution of this sell-off is a rebound. With that in mind, watch for an hourly close above $1.3039 as a signal of a potential bullish shift in sentiment. Until then, a short-term downside looks likely.