GBP-USD Holds On to Recovery Gains

GBP-USD: This pair saw a follow-through higher on Friday and tested an intraday high of 1.6705 before backing off to close the session at 1.6665. Decisive invalidations of the 1.6692 and the 1.6642 levels must occur for the pair to completely remove the current downward pressure and turn risk toward the 1.7041 level.

In the medium term, EUR-USD's current price action remains corrective as long as it holds firmly above its long-term rising trend line and its major exponential moving averages, which are sloping higher and leaving targets at the 1.5000 and the 1.5062 levels.

Our outlook for USD-JPY remains lower as it holds within its established falling channel. The pair weakened on Friday, selling off hard, reversing its Thursday gains and creating further downside potential toward the 89.16 level.

Though weakening on Thursday, EUR-JPY continues to hold within its established symmetrical triangle. A resolution either way is required to trigger meaningful directional moves.

USD-CAD remains vulnerable to the downside having continued to weaken since losing upside momentum at the 1.0867 level. This leaves downside risk toward the 1.0414 and the 1.0204 levels.

We retain our bearish outlook on EUR-GBP nearer term. The pair has reversed its higher recovery attempts on Thursday and Friday. Downside objectives are located at the 0.8896 and the 0.8837 levels.