Dukascopy Bank Team
Dukascopy Bank SA
GBP/CAD 4H Chart: Channel Up
Comment: GBP/CAD continues to trade within the bullish channel, and the currency pair has recently confirmed its bullish intentions by gaining a foothold above the 2008 peak. In the near term, however, the bias is to the downside. The price is approaching the upper trend-line of the pattern, and we expect a bearish correction to start around 2.11 dollars. Alternatively, even if the Sterling slips beneath the lower trend-line at 2.05, there will be plenty of supports to attempt to resume the rally. The closest will be the 200-period SMA at 2.0320, followed by demand at 2.0240 and a cluster of supports around 2.01. Meanwhile, the sentiment is bearish: two thirds of open positions are short.
XAU/USD 1H Chart: Rectangle
Comment: Considering that a rectangle is a continuation pattern and before the consolidation started the trend had been bullish, the base scenario is a break-out through 1,166. In this case the target will be a combination of the daily R2 and weekly R1 at 1,182. Beyond this lies the June high and weekly R2 at 1,206. On the other hand, if support at the mark of 1,151 fails to underpin the price and allows the exchange rate to fall, there is likely to be a sell-off through the weekly pivot point down to 1,132 dollars, the current location of the 200-hour SMA. The sentiment among the SWFX traders is only slightly bullish: 57% of positions are long and 43% are short.
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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