Dukascopy Bank Team
Dukascopy Bank SA
GBP/CAD 1H Chart: Channel Up
Comment: So far this year has been bearish for the Sterling, but the lower time frames suggest the currency has the potential to negate some of the latest losses within the emerging ascending channel. Eventually, in the perspective of the next several weeks, GBP/CAD might recover up to 1.9350, but for now the gains are to be limited by the upper boundary of the pattern at 1.92, which is reinforced by the weekly R1 and March 10 high. At the same time, near-term dips are to be contained by the rising trend-line at 1.8860. If it is not enough to withstand selling pressure, the next target will be the weekly S1 at 1.8790, followed by the March 1 low at 1.8675. As for the sentiment in the SWFX market, the traders are mostly long the Pound—69% of them.
GBP/USD 1H Chart: Channel Up
Comment: The Cable is set to rebound. The pair has just bumped into the lower boundary of the bullish channel, which is strengthened by the long-term moving average. GBP/USD is expected to bounce off of the support area at 1.4266/30 and then rally up to 1.4550. In the longer-term perspective, the price could try re-testing 1.4670, namely the February high. Alternatively, in case the bears keep pushing the rate lower despite the density of the demand zone, another potential line in the sand will be at 1.4190/70, represented by the weekly S1 and daily S3. The distribution between the longs and shorts, however, is against the rally, being that the Sterling is already overbought—65% of traders hold bullish positions.
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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