GBP/USD could rebound following sharp sell-off
GBP/USD sold off sharply in the wake of yesterday’s Bank of England (BoE) meeting, with the price falling into trendline support. We are seeing some strength coming back into play here, with a rebound looking likely. However, there is reason to believe it is the beginning of a bearish reversal for the pair.
As such, it makes sense to look out for the Fibonacci retracements are possible areas to sell into. A break back above $1.3268 would negate that bearish view.
Potential USD/CAD head and shoulders
USD/CAD is approaching the $1.2552 mark, which represents the lower bounds of a head and shoulders formation. This pair has been showing signs of a potential bullish move over the past week, with the break above $1.2576 completing a double bottom formation.
For now, the ability to break below the $1.2539-$1.2552 support zone is key to understanding whether we are going to see a deep retracement towards the $1.2495-$1.2466 region.