GBP: Rallies Likely To Be Sold Enthusiastically For Now; USD/CAD: Upside Potential To 1.35 – TD

The US dollar is showing some strength of late. What is the tactical outlook for the GBP/USD and USD/CAD?

Here is their view, courtesy of eFXdata:

TD Research discusses GBP/USD outlook and USD/CAD tactical outlook.

“Sterling  remains under considerable pressure with cable now below key support levels. Both the technical and fundamental backdrop look troubling for the pound right now. As such,  we still have some room to run before we would look to fade this move.  We think rallies are likely to be sold enthusiastically for now,” TD notes,

“While we think the USD’s medium-term direction is down, we think  a break above key trendline resistance in USDCAD points to more upside potential toward 1.35,” TD adds.