Loading...
Traders Beware!
Warning!

Fraudulent websites posing to have a connection with JFD

Please be aware of fraudulent websites
posing as JFD's affiliates and/or counterparties

More information
by Charalambos Pissouros

GBP/CAD Trades Near the Lower End of a Range

GBP/CAD traded lower yesterday, but the slide was halted near the 1.7200 barrier, which is also the lower bound of the sideways range that’s been in place since March 27th. Then the rate rebounded, with the recovery staying limited near the 1.7310 level. Although the pair continues to trade near the lower end of the range, we would like to see a decisive break below that bound before we start examining further extensions to the downside.

If, indeed, the bears manage to overcome the 1.7200 zone, we could see them aiming for the low of March 27th, at around 1.7065. The rate could rebound somewhat after testing that zone, but if it fails to overcome the 1.7200 area, the bears could jump back into the game and push for another leg down. If this time they manage to overcome the 1.7065 hurdle, we may see them diving towards the 1.6915 area, marked by an intraday swing low formed on March 26th.

Shifting attention to our oscillators, we see that the RSI runs below 50, while the MACD lies below both its zero and trigger lines. Both indicators detect negative momentum, but the RSI appears to have bottomed slightly above its 30 line, which suggests that a small bounce may be on the cards before the bears decide to take charge again, perhaps for the rate to test the 1.7370 level, defined as a resistance by Wednesday’s inside swing low.

Having said that though, in order to start examining whether traders want to keep this exchange rate range-bound for a while more, we would like to see a clear recovery above 1.7370. The bulls may take charge temporarily and aim for yesterday’s high, near the psychological zone of 1.7500. Another break, above 1.7500, could extend the advance towards Monday’s high, at 1.7625, or the upper bound of the range, at around 1.7700.

GBP/CAD 4-hour chart technical analysis

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. 83% 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 2020 JFD Group Ltd.

WEEKLY FINANCIAL NEWSLETTER
RIGHT INTO YOUR MAILBOX!
SUBSCRIBE TO JFD'S STRATEGIC REPORT

MORE MARKET INSIGHTS