GBP/CAD: Trapped In A 300 PIP Consolidation, Where To Next?!

Published date: 22/03/2019
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Since my last article on GBP/CAD last week there has not been any drastic changes to this pair. However, fundamentals have had some impact during this week which is detailed below.

After the pound gaining some strength and creating new highs over a volatile week last week, this week has seen GBPCAD on a downside trend since the beginning of this week on the lower time frames.

Last weeks highs were caused by the news around a no deal Brexit being taken off the table and the same topic is the cause of Sterling losing strength this week with more uncertainties around Brexit. We saw the Pound gain some power back last night when the EU said that Article 50 could be extended to April 12th if the withdrawal bill is not voted through next week.

Another factor that has also contributed to this pair’s recent downfall was data release for the crude oils. On Wednesday we got a -9.589M reading for the USD crude oil inventories, which was better than expected. As we saw the oil price rocket up in response to this positive data on Wednesday, we saw GBP fall against the Canadian Dollar since Canada is the fifth largest crude oil producer on the planet. 

We have Core CPI data out for Canada later today so this could provoke further movement for this pair depending on whether its positive or negative data.

Yesterday we smashed our daily level of support of 1.74500 and have climbed back up to our weekly support of 1.76000.

I will be monitoring price but personally won't take position off this due to Brexit volatility. But keep an eye on the news with this pair and let's see what will unfold before us.


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