Over the past week, both the Canadian Dollar and Great Britain Pound have overcome notable resistance levels through mid-October versus the US Dollar. This has set a far more significant USDCAD topping structure and more bearish outlook. For GBPUSD, however, we see a bullish tone in the very near term, but a bigger picture negative view.
USDCAD
A bearish shift below 1.2859 on Thursday aims lower for October.
Despite a bounce Friday, whilst below 1.2948 we see a negative tone still.
Early This Week:
We see a downside bias for 1.2828; break here aims for 1.2828, maybe 1.2805.
But above 1.2948 opens risk up to 1.3021.
Short/ Intermediate-term Outlook – Downside Risks:
We now see a more negative tone with the bearish threat to targets at 1.2656 and 1.2304.
Daily USDCAD Chart
GBPUSD
A resilient consolidation tone Thursday-Friday of the unexpected surge above 1.5383 on Wednesday, leaves a positive tone for into this week, whilst above 1.5400
However, the previous push below 1.5162 leaves a bearish tone for October, whilst below 1.5659.
Early This Week:
We see an upside bias for 1.5528/42; break here aims for 1.5568 and 1.5600.
But below 1.5413/00 opens risk down to 1.5336.
Short/ Intermediate-term Outlook – Downside Risks:
We see a negative tone with the bearish threat to 1.5105 and 1.5087.
Below here targets 1.5000 and 1.4856.
Daily GBPUSD Chart
