At the end of last week we have seen some very interesting reversal price action across the several FX pairs. GBP and CAD were very impressive on Thursday and Friday, and close at the highs at the end of the week, which suggests that we may see more gains ahead on those two currencies.
On GBPUSD there can be only a temporary recovery up into a big wave 4-cricled, but there is enough of room to the upside based on the good price action. We know that recovery from 1.4080 should be made by minimum three legs, so we will expect more upside after wave B) retracement from 1.4362 is complete. We see a very nice technical zone around 1.4200/1.4220 that seems like an ideal support level. Ideally, the price will turn up from there this week.
GBPUSD, 30 Min
On USDCAD the price turned sharply down last week, clearly in an impulsive fashion which puts the pair in bearish mode, even if just temporarily. We expect more downside for sure, but will need a three wave bounce first up into a red wave B). The ideal zone for a new leg down will be around 1.4432 where the former broken swing support can turn into a resistance.
USDCAD, 1H
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