Daily USDCAD & GBPUSD technical analysis

Bellow you will find daily USDCAD and GBPUSD technical analysis into NFP data due on Friday. See the major technical levels you should look out for and Forex trade opportunities for two currency pairs.

05 October, AtoZForex – This week is all about the US Non-Farm payrolls (NFP) report and employment data scheduled on Friday to judge the odds for the next Fed interest rate hike. Ahead of the report, we have daily technical analysis for GBPUSD and USDCAD currency pairs.

Daily GBPUSD technical analysis

As we discussed in the weekly GBPUSD technical analysis, underlying GBPUSD trend remains to the downside following a vote for Brexit. Despite a temporary correction, daily MACD has warned us of strengthening momentum and upcoming continuation before a breakdown of the previous consolidation range.

Daily USDCAD and GBPUSD technical analysis Hourly GBPUSD technical analysis (click to zoom in)

Hence, the prior custom Fibonacci -10% retracement zone at 1.280 was reached and price continued trading lower.

Looking at hourly GBPUSD technical analysis, we have no signs of correction yet as the pair trades guided by downward sloping 20 and 100 hourly moving averages. Our next targets fall on Fibonacci 150% retracement level and Fibonacci 160% retracement zone at 1.265 and 1.260 respectively, from where a correction would not be surprising.

Meanwhile, resistances are located at Fibonacci 138.2% retracement zone at 1.2715 and 1.2745 level.

Daily GBPUSD fundamental analysis

From fundamental GBPUSD perspective, both Manufacturing PMI releases for the US and UK surprised to the upside. Although UK data was higher up than US equivalent, 55.4 against 51.5, Richmond Federal Reserve President Jeffrey Lacker comments on Tuesday helped to push USD higher across the board.

The non-voting Fed member reiterated his view of a strong case for raising US interest rates, arguing that borrowing costs might need to increase materially to keep inflation expectations under control.

Daily USDCAD technical analysis

Turning to the Loonie, the pair continues to trade lost between 50 and 200 day moving averages but has now approached the higher end of the temporary dynamic consolidation channel.

Daily USDCAD and GBPUSD technical analysis Daily USDCAD technical analysis (click to zoom in)

Nonetheless, USDCAD has reached our first target at 1.319 based on a setup from 1.310. Our second target remains at 1.328 and a break of yesterday’s high at 1.3215 would reinforce the technical outlook. Our nearby support levels fall on 1.315 and 1.310.

Also see: UOB trade ideas for forex traders on 5th October

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