GBP/USD eyes $1.55
Two strong days at the end of last week put GBP/USD back on an upward trajectory, although it still needs to push on and clear the October high at $1.55. This would then clear the way towards $1.5573, and then $1.5651. The surge on Friday brought an end to the steady downtrend that had been in place since 22 October, and with the 50-hour SMA ($1.5340) turning higher we could see this move continue for most of the week. Only a move back below $1.5360 would invalidate the bullish outlook, and even then bears will need to get the currency pair back below $1.5250 to suggest that the downward trend has reasserted itself.
EUR/USD targets 200-day SMA
The euro seems to have found a floor in its post-Draghi slump against the USD at the $1.09 level, close to the area where the August bounce began. Having stabilised in recent sessions we now look to see whether it can push on and move above the 200-day SMA at $1.1110, putting it back above the September support level. A failure to hold these recent gains would lead to another possible test of support at $1.09, with a daily close below here heading to the July low at $1.08 and then on to $1.0520.
USD/CAD could fall through C$1.3050
Rapidly ebbing USD strength has meant that we have seen the mid-October uptrend here give way to fresh downside. Friday's late drop saw the pair break the 28 October low at C$1.31, and while the 23 October support level around C$1.3050 still holds, a break through here would see the pair head towards support around C$1.2950. If the greenback revives it still needs to push through C$1.3175 and then C$1.33 to reverse the emerging downward trend.