Dukascopy Bank Team
Dukascopy Bank SA
GBP/CAD 4H Chart: Channel Up
Comment: GBP/CAD continues to develop a bullish channel despite the 200-period SMA it is currently facing. If the up-trend and weekly PP stay intact, the currency pair will probably be able to surpass last week’s high and challenge the upper boundary of the pattern. In the longer term we will then be waiting for a test of the September high.
Alternatively, should the rate slide beneath 2.0146 today, the outlook will be changed to bearish, and 1.9940 will be considered the first main target, represented by a combination of the weekly and monthly S1 levels. Meanwhile, the key support is 1.98. As for the sentiment, 74% of open positions right now are long.
GBP/JPY 4H Chart: Channel Up
Comment: GBP/JPY is currently trading right at the upper boundary of the bullish channel it has been forming since the end of September. Accordingly, while we hold an overall bullish bias, the short-term outlook is negative. The currency pair is likely to be capped by 186.36 (monthly R1 and up-trend), and the present target is the lower trend-line at 183.40, which is reinforced by the monthly PP. There will also be a notable support level at 184.40, created by the weekly S1 and 200-period SMA. At the same time, a close above 186.36 will imply an extension of the latest recovery to the September high at 188.40. However, the market seems already to be overcrowded with bulls—74% of open positions are now long.
This overview can be used only for informational purposes. Dukascopy SA is not responsible for any losses arising from any investment based on any recommendation, forecast or other information herein contained.
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