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

The pound has managed to avoid further losses so far this morning, while a bounce in USD/JPY has seen the ¥111 level defended yet again. 

GBP/USD forex pair
Source: Bloomberg

GBP/USD may benefit from lack of Brexit news
An absence of Brexit news might lead to a continued bounce in GBP/USD, given we have held above $1.39 for the time being. However, it will take a recovery of $1.40 to confirm a more extended leg higher is underway.

Nonetheless, with Brexit talk still all the rage, the risk is that we get sudden moves lower, in which case we look to $1.3866 and then $1.3803 as potential support.

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EUR/USD may dip lower
With intraday momentum indicators rolling over we may see another attempt in EUR/USD to push below $1.10 and the 50-day simple moving average (SMA), which would accord with the overall downtrend prevailing at the moment.

Further downside targets lie around $1.0916 and then $1.0876. Any bounce must clear the 200-day SMA at $1.1048, which may then signal an attempt to retest the month highs above $1.13.

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USD/JPY to disappoint bears
A staunch defence of the month lows around ¥111 will have delighted the bulls, and means we look for a continuation of these gains towards ¥113.76, at least on the USD/JPY.

Hourly charts point to some immediate weakness, with the failure to push on beyond the R1 pivot at ¥112.54 signaling at least some more downside is in store for now. However, so long as ¥111 holds it looks like bears will be disappointed for now. 

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USD/CAD looks to offer decent opportunities
A clear range on this pair from the C$1.3650/$1.37 area up to C$1.3850 and then C$1.40 provides traders with some decent opportunities.

With the price back above C$1.37 we look for a bounce back towards the top end of the range. This would then set up the daily chart for a possible move back to the 50-day SMA at C$1.40.

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