FX levels to watch: GBP/USD, EUR/USD and USD/CAD

EUR/USD and GBP/USD are turning higher after recent losses, while USD/CAD falls into trendline support.

GBP/USD turning higher after recent decline

GBP/USD sold off sharply on Friday, as the pair continues to exhibit strong retracements within its recent recovery. There are still questions over whether we are currently seeing a retracement of the $1.3072-$1.2724 sell-off.

However, for now it looks likely we will overcome the $1.2927 peak from Thursday. Thus, it makes sense to look for a further upside today, with a break below $1.2794 required to negate this bullish short-term view.

EUR/USD rebounding amid recent breakdown

EUR/USD has been breaking lower since hitting trendline resistance last week.

The fall below trendline support led us to further declines, with the short term creation of lower highs and lower lows providing us with the potential of further downside from here. Given this recent period of weakness, there is a good chance of a further downside to come, with the current upside looking like a retracement before we turn lower once more. A break above $1.1432 would negate this bearish outlook for the day.

USD/CAD back into major support level

USD/CAD has managed to fall back into Thursday’s low of $1.3182, which also coincides with a potential trendline taken from the past two swing lows.

The uptrend in play over the past two months dictates a likely rebound from this region. Thus, watch out for how we react at this level, with a rally looking likely. This bullish view holds unless we see a break below the $1.3127 mark.

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