GBP/USD, EUR/GBP, USD/CAD – North American Session Daily ForecastThe Brexit saga will continue after October 31, so we could see some movement from GBP/USD and EUR/GBP during the week. On Monday, GBP/USD is slightly higher, while EUR/GBP and the Canadian dollar are trading sideways.
GBP/USD has started the new trading week with gains. In the North American session, the pair is trading at 1.2869, up 0.32% on the day.
EU Grants Another Brexit Extension
After more drama on the Brexit front last week, it is clear that the U.K. will not depart the EU on October 31. What happens next, however, remains unclear. The EU has agreed to yet another 3- month extension, although Prime Minister Johnson is itching to say adieu to Brussels as soon as possible. Johnson has floated the idea of a snap election in December, but would need parliament’s approval before he can call an election. The continuing uncertainty could push the pound-to-dollar ratio lower in the coming weeks.
GBP/USD remains range-bound, but we could see a breakout during the week. The pair tested resistance at 1.2870 on Monday, while support at 1.2180 remains vulnerable. On the downside, the next support line is at 1.2750. Above, we find resistance at 1.2940.
USD/CAD remains range-bound. In Monday’s North American session, the pair is trading at 1.3059, down 0.04% on the day. There are no Canadian events on the schedule.
1.3070 is a fluid line. Currently, it is an immediate resistance line. Below, we find support at 1.3040, which has held since mid-July. The primary trend is down, as USD/CAD has posted weekly losses for a third straight week. This said, I would expect downward pressure on the 1.3040 line.
EUR/GBP has posted slight losses on Monday. In the North American session, the pair is trading at 0.8626, down 0.15% on the day. There are no major events out of the eurozone on Monday, so the pair’s movement has been limited.
EUR/GBP has been putting pressure on resistance at 0.8647 since mid-October. However, the pair has been unable to sustain any upward movement above 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 last week.