The GBPUSD pair has been trending higher since January 2017 after reaching a major low in October 2016 of 1.19116. This week, the price broke above the 200-Week MA at 1.40545, keeping the bullish trend on track. The price is firmly back trading in the pre-Brexit range and it is in this range we have to look in order to find the next resistance levels. Price is working its way towards the top of the current rising channel on the weekly chart, currently just below 142.000. The 1.41796 level is close to the trend line also and this was a level from 2016. The median level pre-Brexit in 2016 was around the 1.43404 area and this can be a key area going forward. Other levels above include 1.45187 and 1.46626. The key high pre-Brexit was 1.47690, with the Brexit high of 1.50165 overhead.
Support for the pair comes in at 1.40000, followed by 1.38354. The 100-Week MA is close to the 1.35000 level, with the channel bottom at 1.33215. A loss of this area would target support below at 1.30586 and around 1.28000.
The USDCAD pair has moved lower again today. The World Economic Forum in Davos is in full swing, with headlines breaking from US Administration Officials driving Dollar moves. US Treasury Secretary Steve Mnuchin has said a ‘weaker dollar is good for the US’. NAFTA negotiations are back on the table. And Crude Oil Inventory Stocks will be released later today. All of these factors are driving USDCAD price.
Support can be found at 1.23000 and we are currently testing 1.23279. Any loss of these levels targets 1.22500 and 1.21856. Resistance comes around the 1.24000 level, with the moving averages on the 1-Hour chart around 1.24400. The down sloping trend line is found at 1.24695 and a rally that breaks above it could target 1.25545 initially.