Selling GBP/USD into trend line resistance near 1.4360 is supported by the lack of momentum shown by RSI, notes Bank of America Merrill Lynch.
"However, if resistance starts to break, the trend would also be breaking above the weekly linear resistant trend line. It has mostly failed at this level all year.
A daily bullish MACD cross and a weekly bullish MACD cross suggest that there is some countertrend strength.
A breakout would point price to another retest of the April 2015 lows, highlighted by the orange rectangle of 1.45-1.4575," BofA argues.
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Turning to USD/CAD, BofA notes it finally breaks its monthly range after sitting on a horizontal area of support between 1.2850-1.3020 for almost a month.
"It has traded around the 50wk average and failed to move back above a broken trend line (1.3325). Our market profile chart suggests a decline to the bottom of the Ichimoku cloud at 1.2400.
Any move lower must break RSI support to show downward momentum. MACD just crossed negative suggesting a growing downtrend," BofA projects.