GBP/CAD traded higher yesterday but hit resistance at 1.7310 and today, it pulled back. Overall, the rate has been trading within a sideways range, between 1.7175 and 1.7435, since March 12th, and thus, we would consider the short-term outlook to be neutral.
In order to start examining whether the bears have gained the upper hand, we would like to see a dip below the range’s lower bound, at 1.7175. This would confirm a forthcoming lower low and may pave the way towards the 1.7050 support zone, marked by the low of December 21st. If the bears are not willing to stop there, then a break lower could see scope for extensions towards the low of December 15th, at around 1.6945.
Looking at our short-term oscillators, we see that the RSI rebounded and now runs near its 50 line, while the MACD lies fractionally below zero, but slightly above its trigger line. Both indicators are near their equilibrium levels, detecting lack of directional momentum, which supports our neutral view.
On the upside, in order to start examining whether the bulls are in the driver’s seat, we would like to see a break above the upper bound of the range, at 1.7435, or even better above the 1.7480 territory, which provided strong support between March 5th and 9th. This may encourage the buyers to drive the battle towards the 1.7595 obstacles, marked by the high of March 11th, the break of which could extend the advance towards the high of March 4th, at 1.7678.
JFDBANK.com - One-stop Multi-asset Experience for Trading and Investment Services
The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. JFD Group, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD Group analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyses and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyses and must therefore be viewed by the reader as marketing information. JFD Group prohibits the duplication or publication without explicit approval.
72,99% of the retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Please read the full Risk Disclosure: https://www.jfdbank.com/en/legal/risk-disclosure
Recommended Content
Editors’ Picks
EUR/USD holds steady near 1.0650 amid risk reset
EUR/USD is holding onto its recovery mode near 1.0650 in European trading on Friday. A recovery in risk sentiment is helping the pair, as the safe-haven US Dollar pares gains. Earlier today, reports of an Israeli strike inside Iran spooked markets.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD is rebounding toward 1.2450 in early Europe on Friday, having tested 1.2400 after the UK Retail Sales volumes stagnated again in March, The pair recovers in tandem with risk sentiment, as traders take account of the likely Israel's missile strikes on Iran.
Gold: Middle East war fears spark fresh XAU/USD rally, will it sustain?
Gold price is trading close to $2,400 early Friday, reversing from a fresh five-day high reached at $2,418 earlier in the Asian session. Despite the pullback, Gold price remains on track to book the fifth weekly gain in a row.
Bitcoin Price Outlook: All eyes on BTC as CNN calls halving the ‘World Cup for Bitcoin’
Bitcoin price remains the focus of traders and investors ahead of the halving, which is an important event expected to kick off the next bull market. Amid conflicting forecasts from analysts, an international media site has lauded the halving and what it means for the industry.
Geopolitics once again take centre stage, as UK Retail Sales wither
Nearly a week to the day when Iran sent drones and missiles into Israel, Israel has retaliated and sent a missile into Iran. The initial reports caused a large uptick in the oil price.