GBP/USD triangle points to further upside
Last week we discussed a possible diamond top at key trendline resistance. However, without the break this has now simply turned into a symmetrical triangle formation, which given the strong upward trending market on entry, would point towards another move higher on exit. Given the clear break above the trendline support, I expect to see a return to $1.555. The next major level above that is $1.565, yet given the clear lower highs being created in the longer term, I do not think GBP/USD will reach that level before turning lower once more. Thus I am simply bullish and expect an upward breakout towards $1.555. This view holds unless the price moves back below $1.5427.
GBP/JPY breaking higher once more
GBP/JPY has been breaking higher since hitting a major trendline support last week; something I have been talking about both in the lead up and upon the creation of this low. Today has seen the price spike higher once more, moving well clear from the ¥184.85 resistance level. I remain bullish and believe we still have a significant amount to run on this rally. However, I would be hesitant buying into a big marubozu candle like this, and thus a retracement or consolidation would be a lower risk entry point for bulls. I remain bullish unless the price moves back below ¥184.61, with the medium-term outlook pointing towards the ¥186.00 and ¥188.30 resistance levels.
USD/CAD resurgence hits the buffers
USD/CAD has been moving sharply higher over the past two trading days, as it charges back towards the crucial Y1.308 resistance level. However, this morning has seen the price turn lower in a significant way, breaking below the C$1.301 support level. With this in mind, I expect further near-term downside today, with the price looking towards the C$1.2972 and C$1.2952 levels. However, given the strong move higher over the past two days, there is a good chance we could see this resurgence turn into something bigger. I would ultimately need to see a move back above C$1.305 to point towards further upside.