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

The U.S. released mixed employment data earlier on Friday. Wage growth improved to 0.2% in September, compared to 0.0% a month earlier. However, this fell short of the forecast of 0.3%. The nonfarm payrolls report dropped to 128 thousand, much better than the forecast of 90 thousand. The unemployment rate ticked up to 3.6%, up from 3.5%. This matched the forecast.

GBP/USD has posted small gains on Friday. In the North American session, the pair is trading at 1.2949, up 0.06% on the day.

British Manufacturing PMI Improves

British Manufacturing PMI remains in contraction mode, but there was some improvement in the October release. The index rose to 49.6, its highest level since April. The uncertainty around Brexit and weak global growth have taken its toll on the manufacturing sector.

Technical Analysis

GBP/USD continues to test resistance at 1.2940. The pound has shown slow-but-steady upward movement this week and has climbed close to 1.0 percent. The pair is putting pressure on 1.3000, which has psychological significance. If the pound can break above this line, I would expect buyers to enter, which would extend the pound’s gains. On the downside, there is support at 1.2870.

USD/CAD

USD/CAD has posted slight gains in the North American session. In Friday’s North American session, the pair is trading at 1.3184, up 0.14%.

Technical Analysis

USD/CAD tested resistance at the key resistance line of 1.3200 on Wednesday, but then retracted. I expect the 1.3200 line to remain under pressure into next week. USD/CAD is putting pressure on resistance at the 50-EMA line, which is at 1.3191. If the pair can break above the 50-EMA, this would be a bullish signal and I would expect to see buyers.

EUR/GBP

EUR/GBP has posted slight losses on Friday. In the North American session, the pair is trading at 0.8604, down 0.21% on the day.

Technical Analysis

EUR/GBP remains range-bound. The pair has flirted with resistance at 0.8647 since mid-October, but this line has proven to be resilient. With the pair reversing directions, there is growing pressure on support at 0.8580, which was tested last week.