USD/CAD firstly formed a bullish “engulfing” candlestick on the W1 and then confirmed the upside by the following strong bullish candlestick.
GBP/USD tries to recover
Information is not investment advice
There’s a bullish divergence on the daily chart of GBP/USD. The pair is currently testing levels above 1.2560 (May low). If the US Federal Reserve is dovish, the pound will be able to get to 1.2650 area (100- and 50-period MAs on H4). However, given the political risks, it will be hard for the British currency to get higher. As a result, it will be sensible to look for sell opportunities there.
Aggressive traders may buy on the break above 1.26 targeting 1.2650.
Notice that given the meetings of the British and American central banks the risks are higher than usual.
GBP/USD formed a lower high at the start of this month, pressured by the strong resistance in the 1.30 area.
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