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The FxPro Analyst Team

USDCAD and GBPUSD Test Major Resistances

USDCAD has been moving along the downside uptrend line support since 19th October, due to the recent strengthening of the dollar.

The current price is still holding above the support line. Yet it is trading below the mid-term major resistance level at 1.3400, the selling pressure above this level is heavy, the price will likely pull back here.

In addition, the 4 hourly and daily Stochastic Oscillators are both above 80, suggesting a retracement.

The resistance level is at 1.3400, followed by 1. 3450 and 1.3500.
The support line is at 1.3360, followed by 1.3330 and 1.3300.

Keep an eye on the US Initial Jobless Claims, Durable and Core Durable Goods Orders (Sep) figures, to be released at 12:30 GMT. Also the Pending Home Sales YoY and MoM (Sep) figures, to be released at 14:00 GMT today.
With better-than-expected readings, USDCAD will likely rally and test the resistance level at 1.3400.
With lower-than-expected readings, USDCAD will likely fall and test the support line at 1.3360.

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This morning, the Q3 UK GDP YoY and QoQ figures, were 2.3% and 0.5% respectively, both better than expectations of 2.1% and 0.3%. The figures lifted GBPUSD, testing the near term resistance level at 1.2250, then pulling back.

Markets are still in fear of the associated risks of triggering Article 50, restraining the bullish momentum of Sterling.

Yet the level at 1.2100 provides a strong support, the near term price should hold above the level.

The current trading pattern is likely to oscillate in the range between 1.2150 and 1.2300.

The resistance level is at 1.2250, followed by 1.2300 and 1.2330.
The support line is at 1.2200, followed by 1.2180 and 1.2150.

We will see the release of a series of important US economic figures to be release today, it will influence the strength of the dollar, and the trend of GBPUSD.

Initial Jobless Claims, Durable and Core Durable Goods Orders (Sep) figures, will be released at 12:30 GMT.
The Pending Home Sales YoY and MoM (Sep) figures, will be released at 14:00 GMT today.

With better-than-expected readings, GBPUSD will likely fall and test the support line at 1.2200.
With lower-than-expected readings, GBPUSD will likely rally and test the resistance level at 1.2250.

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