GBP/USD, EUR/GBP, USD/CAD – North American Session Daily Forecast

GBP/USD is flat on Friday. In the European session, the pair is trading at 1.2834, down 0.03% on the day.

Brexit Turmoil Continues

It was another week full of drama in the British parliament. Lawmakers voted down a government bill which contained a tight timetable to pass a withdrawal deal by October 31, the date the U.K. is scheduled to leave the European Union. A defiant Prime Minister Boris Johnson has pulled the Brexit bill and wants a December election if parliament cannot solve the impasse. The pound has jumped over 4% in October on hopes that a withdrawal agreement had been achieved, but this optimism has proven premature. A no-deal exit is still a possibility, and if investors fear that a deal will not be reached in time, the pound could lose some of its luster and the pound-to-dollar ratio could fall.

Technical Analysis

GBP/USD broke below support at 1.2870 on Thursday. This line has been under pressure throughout the week. The 50-EMA is at 1.2810, just below the pair’s current level. If GBP/USD breaks below this line, GBP/USD could be headed to lower ground.

USD/CAD

USD/CAD is trading sideways in Friday’s North American session. The pair is trading at 1.3063, down 0.06% on the day.

Technical Analysis

USD/CAD has tested support at 1.3070 on Friday. This line has been under pressure throughout the week. The primary trend has been down, and I would not be surprised if the USD/CAD can close the Friday session below this line. Below, we find support at 1.3020, which has held since mid-July.

EUR/GBP

EUR/GBP has posted slight gains on Friday. In the European session, the pair is trading at 0.8646, up 0.21% on the day.

German Consumer Confidence Slips

The eurozone economic picture is cloudy, and consumers are worried. German GfK Consumer Confidence sagged to 9.6 in October, down from 9.9 a month earlier. The indicator has steadily fallen in 2019 – the January release came in at 10.8 points.

Technical Analysis

EUR/GBP has been putting on pressure on resistance at 0.8647 since mid-October. However, the pair has been unable to sustain an upward trend and break past this line. On the upside, we find resistance at the round number of 0.8700. On the downside, there is support at 0.8580, which was tested earlier in the week.