Dukascopy Bank Team
Dukascopy Bank SA
GBP/CAD 4H Chart: Two scenarios likely
The British Pound has been declining in an ascending channel pattern against the Canadian Dollar since the middle of December. The decline began after the currency pair reversed from the upper border of the channel pattern at 1.7778 on December 13.
The exchange rate is currently trading near the bottom border of the ascending channel pattern at 1.7017 and could be set for a breakout.
If this breakout occurs, the GBP/CAD pair could continue to trade south within this week's trading session.
However, if the channel pattern holds, bullish traders could drive the currency exchange rate higher during the following trading sessions.
GBP/AUD 4H Chart: Could edge up
The Pound Sterling declined by 1.87% in value against the Australian Dollar during last week's trading sessions. The currency pair tested the lower boundary of an ascending channel pattern at 1.8801 during this period.
As for the near future, the GBP/AUD exchange rate could edge higher. Bullish traders might target a psychological resistance level at 1.9200 within this week's trading sessions.
However, a resistance level formed by the 200– period simple moving average at 1.9000 could hinder bulls from pushing the currency exchange rate higher during the following trading sessions.
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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