FX levels to watch – GBP/USD, EUR/USD, USD/CAD

Dollar strength is back, which puts GBP/USD on the back foot but gives hope that USD/CAD has bottomed.

Dollar and pound
Source: Bloomberg

GBP/USD

The pair continues to edge lower, having topped out at $1.4450. It will take a move below $1.4250 to really indicate that the pair is heading into a bearish phase, with a downside target around $1.4050 and then on to the February low at $1.3840.

Any bounce needs to clear the week high above $1.4450, and then on towards the March high at $1.45.

EUR/USD

We have seen consolidation here, and while the pair did move above $1.14 yesterday it now needs to close above this level to confirm more gains are on the way.

Otherwise, we could see a bigger dip back to the rising daily trendline, around $1.1320. It would need sustained price action sub-$1.12 to suggest the bounce is definitively over.

USD/CAD

If the pair can hold above C$1.30 then we may have seen a bottom here. Upside targets would then by C$1.3360, the 200-day simple moving average and then the C$1.3460 area.

The dip yesterday and recovery back above C$1.2923 confirms this as support, with the next level down being C$1.2830. 

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