USD/CAD retraces once more following another leg higher
We saw our big move higher in the USD/CAD yesterday as expected, and the creation of a four-hour doji overnight has preceded another retracement lower which is in progress. The pullback is expected to provide bulls with a new entry point, and for me the most obvious place for that would be C$1.32 which represents the peak from the previous leg higher. Irrespective of where it turns higher, I remain bullish unless the price falls below C$1.3121. Be on the lookout for reversal signals such as a bullish engulfing. Resistance levels to watch on the upside are C$1.3309 and C$1.3353.
EUR/GBP continues to drift higher following selloff
The EUR/GBP pair continues to grind higher, following a major ECB-fueled selloff last week. For now, there is a clear channel to watch for a breakout and near-term resistance at £0.7224. This looks a lot like a bearish flag to me, and the fact that this recovery is so shallow is a warning sign of further potential losses. Nevertheless, it makes sense to await a breakout, with a bearish break coming in the form of a close below £0.7191 while a bullish move would see the price push higher out of this ascending channel.
GBP/JPY trending lower following strong October
The GBP/JPY pair is clearly reversing some of the gains we have seen throughout this month so far. The creation of a new low was a warning sign yesterday, yet the crucial move back below ¥184.5 and now the new found resistance at that point is a sure fire signal of weakness. As such, I am bearish unless we see a close back above ¥184.5, and am looking out for possible support levels around the ¥183.0-¥182.77 zone.