Daily Market Analysis by ForexMart

GBP/USD Technical Analysis: July 27, 2017

The British pound against the U.S. dollar moved sideways in the beginning of the Wednesday session. There is sufficient support found at the 1.30 level which pushes the trend to the upside. Later on, it is possible for the market to break the current psychological levels with the FOMC announcement to be released in the afternoon. Nevertheless, the markets were quiet as they wait for any hints from the Federal Reserve.

If traders can maintain traders more than the 1.30 level, the GBP/USD pair could move higher towards 1.3125 level and even much higher. There are still buying opportunities on the lows in the market since the British pound became cheaper.

Buying lows in the market are suggested instead of selling until a breakdown occurs below the massive support level. Unless it reaches lower than 1.2950, it is alright to sell the pair. However, if it drops even much lower, it is possible to drop even much more that would change the trend when it happens.

Buyers are more aggressive and it would not take long before they return to the market. If the trend gaps in the upper region, it will most likely reach the 1.3450 level which is possible after some time. Many major events that would come out from politicians could affect the British currency. The uptrend will presumably to continue in the long-term. Also, the pullbacks could offer opportunities in the market at a cheaper level.

USD/CAD Fundamental Analysis: July 31, 2017

The USD/CAD was able to obtain the highly-needed bounce on Thursday, which was previously mentioned since the week started. It is followed by the decline of the pair in the past few weeks because of the strong level in which the pair sits together with the possibility that this region is the buyer’s final stand.

As the strength of the dollar recovered, it helped the pair to soar high and affirmed lot of things in the following days. However, there is already a warning that the downward will be very intact and needed much time to return.

It is also mentioned that bears will use any bounce from the commodity-linked pair as an opportunity to sell prices highers. Any hints of recovery seen on Friday had plunged conclusively while the USDCAD appeared to be weak as usual.

The sluggish stance was triggered by the GDP figures of Canada and the United States. But the US data showed a marginally better than expected, while the Thursday’s data from the US prompted the market to have higher expectations from the gross domestic product. On one side, the Canadian GDP came in very strong and able to have another rate increase soon.

This led to a reversal of the whole trend since yesterday and the pair lies in below the 1.24 level which might become weaker.

Ultimately, there are no any major economic releases either from US or Canada. Therefore, consolidation is safely expected together with ranging of the dollar which is at disadvantage because of the developments over the White House during weekends.

Furthermore, it is predicted the USDCAD to remain in pressured area as the markets look forward to a plenty of data expected in the latter part of the week.

EUR/GBP Technical Analysis: July 31, 2017

The Euro against the British pound surged during the Friday session although there some resistance found close to the 0.8960 level. The market had a roll over for the few hours but was limited by the resistance level. There is much support found below that proceeds to market higher.

The next target would the 0.90 level and if the price breaks more and pushes the price towards 0.92 level for long-term. The 0.89 level below persists to be supportive that makes a breakdown far to happen. As shown in the weekly chart, the market sees the 0.89 level to be the support level.

Traders proceed to buy on the lows as it persists in supporting the euro currency. A breakout of both currencies occurred against the U.S. dollar although the market favors the euro more which is reflected in the pair. After some time, there is a lot of volatility in the market directed upward. Shorting this pair may not be ideal but the once the price breaks higher than the 0.90 level. Buyers will turn more hostile as the psychological level of resistance. However, if the price gaps below the 0.89 level which is extraordinarily bearish that would adjust the short-term trend.