GBP/CAD: Up, Up and Away!
It has been an interesting week for this pair with all the hype around the Brexit updates. So let's have a look to see what the markets are looking like for GBP/CAD during this period. Sterling has been strengthening over the past few weeks in the build-up to this weeks Brexit votes.
Looking at the monthly time frame in February we closed on a hammer candlestick engulfing the prior trading month. Dropping down to the weekly we are trending to the upside after finding major support at our key level of 1.67000. And finally, moving onto the daily time frame we are clearly trapped in a 200 PIP consolidation give or take, due to Brexit uncertainties.
I do personally favour further upside but will not be taking any positions until we break above our minor daily resistance of 1.77500. What would invalidate this for myself is a break of my minor daily support of 1.73900. If this happens our next support for the pair would be in and around 1.7100 -1.71500, but we can cross that bridge when we get there.
The MPs took a vote yesterday where MPs voted against Theresa May’s ‘new’ Brexit deal by 391 votes to 242. The pound had a volatile day yesterday spiking up to 1.77000 before it took a sharp turn to the downside reaching 1.74000 mid-morning yesterday after UK Attorney General Cox stated that the ‘legal risk remains unchanged” of the UK being stuck in the backstop. The MPs will return to The House of Commons again today to vote on whether to take a no deal Brexit off the table. If Theresa May wins tonight and the vote is successful this could then strengthen the pound going forward, so it is vital to keep an eye on the fundamental updates and comments.