GBP/CAD traded lower today, after hitting resistance at the crossroads of the 1.7060 level and the downside resistance line taken from the high of January 6th. The fact that the rate is trading below that line but also below the key barrier of 1.7090, keeps the short-term outlook negative in our view.
At the time of writhing, GBP/CAD is trading slightly below the 1.6990 zone, and we would expect the bears to push the action down for a test at 1.6940 barrier, marked by the low of December 16th, the break of which could aim for the low of December 14th, at 1.6895. If the bears are not willing to stop there, then a break lower could see scope for declines towards the low of December 13th, at 1.6830.
Taking a look at our short-term oscillators, we see that the RSI turned down after hitting resistance near its 50 line, while the MACD has topped slightly below zero and crossed below its trigger line. Both indicators detect downside momentum and support the notion for further declines in this exchange rate.
On the upside, we would like to see a clear break above 1.7090 before we start examining a bullish reversal. The rate would already be above the downside line taken from the high of January 6th, and thus, the bulls may decide to travel towards the 1.7190 barrier, marked by the high of January 14th. If they are willing to go higher ,we may see them aiming for the 1.7245 level, marked by the high of January 7th, the break of which could set the stage for advances towards the peak of January 6th, at 1.7315.
Disclaimer:
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. The Group of Companies of JFD, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD 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 prohibits the duplication or publication without explicit approval.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68.02% of retail investor accounts lose money when trading CFDs with the Company. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Please read the full Risk Disclosure.
Copyright 2022 JFD Group Ltd.