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

GBP/USD has lost ground on Thursday, erasing the gains seen on Wednesday. In the North American session, the pair is trading at 1.2860, down 0.32% on the day.

Brexit Drama Continues

The Brexit saga shows no signs of wrapping up anytime soon. Earlier this week, lawmakers rejected 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 said he will call a Christmas election, but he would need a majority in parliament for such a move. The EU has granted yet another 3-month extension, so the ball is now in the government’s court. 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 recent shine and the pound-to-dollar ratio could fall.

Technical Analysis

GBP/USD continues to test support at 1.2870. This line has been under pressure throughout the week. The 50-EMA is at 1.2810, which is an important support level. The pair is also testing resistance at 1.2940, with the round number of 1.300 not far away.

USD/CAD

USD/CAD is flat in Thursday’s North American session. The pair is trading at 1.3074, down 0.02% on the day. The U.S. posted soft data, as durable goods sales and the core reading both posted declines and missed their estimates. The Canadian dollar was unable to take advantage of the weak U.S. numbers.

Technical Analysis

USD/CAD is putting pressure on support at 1.3070. The primary trend has been down, and I would not be surprised if the pair manages to break below this line before the end of the week. Below, we find support at 1.3020, which has held since mid-July.

EUR/GBP

EUR/GBP has posted gains on Thursday. In the North American session, the pair is trading at 0.8646, up 0.36% on the day.

Brexit Troubles, Mario’s Adieu

The pair remains sensitive to the developments surrounding Brexit, as the confusion over the withdrawal agreement continues. Prime Minister Johnson pulled the withdrawal deal legislation after lawmakers rejected his bill which contained a hurried timetable in order to leave the EU by October 31. Meanwhile, there were no surprises from the ECB, which maintained rates at a flat 0.00%. This marked the final press conference from outgoing ECB President Mario Draghi.

Technical Analysis

The pair has been range-bound for over a week, but continues to put pressure on the immediate resistance and support lines. The pair tested resistance at 0.8647 in the European session, but has been unable to consolidate above this line this week. On the upside, we find resistance at the round number of 0.8700. There is support at 0.8580, which was tested earlier in the week.