GBP/CAD has been trading in a trendless mode recently. On March 25th, it broke above the downside resistance line drawn from February 24th, but has yet to break above the 1.7435 zone to confirm a forthcoming higher high and complete a bullish reversal. Until that happens, we will stay neutral.
A clear break above 1.7435, or even better, above 1.7475, would complete the reversal and may initially pave the way towards the 1.7595 zone, which provided resistance on March 10th and 11th. If that zone is not able to stop the bulls, then its break may pave the way towards the high of March 4th, at around 1.7680.
Looking at our short-term oscillators, we see that the RSI rebounded from near its 50 line, while the MACD lies above both its zero and trigger lines, pointing up as well. Both indicators detect upside momentum and support the idea of further advances in this exchange rate. That said, as we already noted, we prefer to wait for a break above 1.7475 before we get confident on that front.
On the downside, the outlook may turn bearish again upon a dip below 1.7180, which is the low of March 25th. This will confirm a forthcoming lower low on the daily chart, and may see scope for declines towards the low of December 21st, at around 1.7050. Another break, below 1.7050, could encourage the sellers to aim for the 1.6950 zone, defined as a support by the low of December 15th.
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. 79.07% 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 2021 JFD Group Ltd.