Trading opportunities for currency pair: with a bounce from the 2.0949 maximum, a double bottom is starting to form on the daily. Any further revival of oil prices will see the GBP/CAD drop to 2.0340.
Background
The last GBP/CAD idea I made came out on 16th November. When the review was published, the pair was trading 2.0297. Due to falling oil prices, following a bounce to 2.0200, I was expecting to see a break through 2.0335 with a 2.0500 target. The idea didn’t come off since Brent stopped falling from 13th to 22nd November. Correspondingly, the GBP/CAD rate couldn’t pass the resistance. The pair was trading in a narrow range and under the resistance throughout the week.
When Brent hit $46.5 per barrel, the GBP/CAD dropped to 1.9849. The rally on the cross started only on 3rd December after a fall in oil quotes and a weakening of the Canadian throughout the market. Due to a weakening of the Canadian dollar and a fall in oil quotes, the GBP/CAD rose to 2.0949.
Current Situation
Now a few words on the current situation. The technical picture is really interesting. A double bottom has appeared due to a bounce from 2.0949 to 2.0560. If we take into account that Brent is now undergoing an upward correction, it’s pretty likely that we’ll see a further fall to 2.0340 for the pound against its Canadian counterpart. We’ll see how things go in the New Year.
Forecasts which are made in the review constitute the personal view of the author. Commentaries made do not constitute trade recommendations or guidance for working on financial markets. Alpari bears no responsibility whatsoever for any possible losses (or other forms of damage), whether direct or indirect, which may occur in case of using material published in the review
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