GBPUSD – Daily Chart
The GBPUSD has reached a clear resistance and psychological level at 1.4700. Price is currently testing the area and we may see some bearish price action as the resistance tries to hold. If price closes above the resistance level, there could be potential buying opportunities as the resistance becomes support.
The GBP has been weakening due to Brexit uncertainty. Recent poll results suggest that ‘Remain’ is back in the lead, the GBP has consequently been strengthening. The EU referendum is this week. The results and build-up to this referendum will likely impact the GBPUSD greatly. If the UK remain in the EU, the GBP is very likely to strengthen. If the UK leave the EU, the GBP is very likely to weaken.
USDCAD – Daily Chart
The USDCAD recently bounced off the trend line resistance identified in June 16th’s chart analysis. As the week progresses, we may see the trend line resistance tested again – providing a potential selling opportunity. Price has formed a minor trend support line, which is currently sitting at 1.2760. If price consolidates between these 2 areas, there may be an opportunity for a breakout trade.
Following the very poor nonfarm payrolls figure at the beginning of the month, we may see some moves lower on USDCAD. With recent positive economic figures from Canada and the partial recovery in the oil markets, the Canadian dollar is set to strengthen. Taking all of this into consideration, the USDCAD may present some very profitable selling opportunities. The US Fed Chair, Yellen, will testify today at 1400 UTC. This may have very little impact on the USD as most traders and investors are waiting the results of the EU referendum. The EU referendum is this week. The results and build-up to this referendum may impact all currency pairs, not just GBP and EUR pairs.