Dukascopy Bank Team
Dukascopy Bank SA
GBP/CAD 4H Chart: Channel Up
Comment: GBP/CAD bottomed out in early October, and since then the currency pair has been developing a bullish channel. Accordingly, we hold a positive bias with respect to the Sterling, especially considering the near-term technical indicators. The rate is expected to rebound from 2.0190/50 and test a tough resistance level at 2.0320. In case of success the price will be in a good position to rise towards 2.0570.
Alternatively, in case the lower boundary of the channel and the 200-period SMA fail to trigger a rally, the price will have a chance to stabilise near the monthly PP at 2.0086/58. However, the sell-off will likely extend deeper, down to a cluster of supports at 1.98.
USD/ZAR 4H Chart: Channel Up
Comment: According to the technicals the outlook on USD/ZAR is bullish. The currency pair is currently trading near the lower boundary of the upward-sloping channel, and a majority of the indicators are pointing north. The price is therefore inclined to confirm support at 13.76 and re-test Oct 29 high at 13.9166. If this resistance is broken, the target will be at 14.16, represented by the weekly R2, rising trend-line and September high.
On the other hand, a dip under 13.76 will imply a slide down to 13.60, where the monthly PP coincides with the weekly S1 and 200-period SMA. Meanwhile, the sentiment is distinctly bearish, as 70% of open positions 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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