GBP/USD, EUR/GBP, USD/CAD – Pounds Gains Ground, Canadian dollar flatThe British pound is showing some strength on Monday, which has pushed GBP/USD higher while sending EUR/GBP lower. The Canadian dollar is almost unchanged.
GBP/USD has started the week with considerable gains. In the North American session, the pair is trading at 1.2859, up 0.67%.
British GDP Improves in Q3
British GDP improved in the third quarter, as the initial estimate came in at 0.2%. This was an improvement over Final GDP in Q2, which declined by 0.2%. Still, the economic picture remains bleak, with uncertainty over the upcoming election and the Brexit process. The manufacturing sector continues to sputter. Manufacturing Production came in at -0.4% in September, after a reading of -0.7% a month earlier.
GBP/SD has posted gains on Monday, as resistance at 1.2925 has weakened. This line could be tested during the week. On the downside, 1.2810 is under pressure. If this line breaks, the pair has significant room to move lower, as the next support level is at 1.2720.
USD/CAD is flat in Monday trade. In the North American session, the pair is trading at 1.3222, down 0.04%. It is a bank holiday in Canada and there are no Canadian indicators, so the pair will likely remain sideways in the North American session.
USD/CAD is trading close to the round number of 1.3200, which is providing immediate support. Lower, there is support at 1.3150. On the upside, the 200-EMA has become relevant and is flirting with the candlesticks. Currently, this line is just above the pair, at 1.3232.
EUR/GBP has started the week with losses, courtesy of a stronger British pound on Monday. In the North American session, the pair is trading at 0.8585, down 0.40% on the day.
EUR/GBP has tested support at 0.8596 in the European session. This line has proven to be resilient, as it has been under pressure since mid-October. This is followed by support at 0.8500. On the upside, there is resistance at the round number of 0.8700.