GBP/CAD traded lower today, after it hit resistance near the 1.7285 hurdle yesterday. The pair has been trading within a sideways range between that zone and the 1.6975 support territory since January 30th and thus, we would consider the near-term outlook to be neutral for now. That said, bearing in mind that the latest slide was triggered after the rate tested the upper bound of the aforementioned sideways path, we see the case for some further declines within the range.
A clear dip below the 1.7140 level, marked by the inside swing high of February 13th, could confirm the case and may initially pave the way towards the low of February 18th, at around 1.7055. If that level fails to stop the pair from drifting lower, then we may experience extensions towards the lower end of the sideways range, which is at around 1.6975.
Shifting attention to our short-term oscillators, we see that the RSI topped within its above-70 zone, fell below 70, and now looks to be heading towards 50. The MACD, although above both its zero and trigger lines, has also topped and could fall back below its trigger soon. These indicators suggest that the recent upside momentum has faded and support the notion for some more declines within the range.
In order to start examining whether the outlook has turned from neutral to positive, we would like to see a decent recovery and a close above 1.7285. This could signal the upside exit out of the range and may initially pave the way towards 1.7380, a resistance marked by the high of January 30th, as well as the inside swing lows of January 24th and 25th. Another move higher, above 1.7380, may allow the bulls to put the 1.7480 territory on their radars.
The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. JFD Group, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD Group analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyses and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyses and must therefore be viewed by the reader as marketing information. JFD Group prohibits the duplication or publication without explicit approval.
76% of the retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Please read the full Risk Disclosure.
Copyright 2019 JFD Group Ltd.