GBP/CAD fake-out to the top side, reverts back into downtrend


  • GBP/CAD bears pushing back on the bull's efforts.
  • Brexit and trade wars keep the pair volatile. 

GBP/CAD has been in flux between Brexit headlines and the Canadian economy, or rather, expectations that the Bank of Canada is not going to b in a particular hurry to cut interest rates. We had bulls stepping in to test the bear's commitments only to find that, they indeed are committed to the dominant downtrend.

GBP/CAD rallied from the 1.6050s to test the 1.63s only to pushed back to a low of 1.6070. The conditions are technically sound for a continuation of a move to the downside but the geopolitical environment is crossing this rade to the point that it really can swing from one direction to the next at the drop of a trade war of Brexit headlines. 

Price of oil in recovery supporting Loonie as well as BoC

The Loonie is linked to the price of oil which, of late, has corrected back to the upside.  "With oil markets trading in sync with risk appetite, crude prices have staged a noteworthy recovery off the recent lows. In fact, with prices trending higher, the bar is razor thin for momentum indicators to reverse course and prompt CTAs to cover some of their recently added shorts in both WTI and Brent crude," analysts at TD Securities explained.

Should oil continue to advance, the Loonie would be expected to respond in kind When you add the recent Consumer Price Index and the likelihood that the BoC is on hold until 2020, then the bullish case for the CAD is even more compelling. However, and again, trade wars are unpredictable and so too are the timings of the headlines which could flip the BoC trade on its head in a swift pivot turn - The same goes for Brexit.

GBP/CAD levels

GBP/CAD

Overview
Today last price 1.6128
Today Daily Change 0.0013
Today Daily Change % 0.08
Today daily open 1.6115
 
Trends
Daily SMA20 1.6094
Daily SMA50 1.6355
Daily SMA100 1.6816
Daily SMA200 1.7018
Levels
Previous Daily High 1.6218
Previous Daily Low 1.607
Previous Weekly High 1.6196
Previous Weekly Low 1.5882
Previous Monthly High 1.6643
Previous Monthly Low 1.5959
Daily Fibonacci 38.2% 1.6126
Daily Fibonacci 61.8% 1.6161
Daily Pivot Point S1 1.6051
Daily Pivot Point S2 1.5987
Daily Pivot Point S3 1.5904
Daily Pivot Point R1 1.6198
Daily Pivot Point R2 1.6282
Daily Pivot Point R3 1.6346

 

 

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