GBP/CAD Forecast Today 14/10: Momentum To Watch (Video)
Date
10/14/2024 2:39:03 PM
(MENAFN- Daily Forex)
In my daily analysis of minor currencies pairs around the world, I have been paying close attention to the British pound against other currencies. In this particular case, we've seen the British pound rally quite nicely against the Canadian dollar, which probably makes a little bit of sense considering that the British Economy seems to be picking up. At the same time, we've had some questions asked about crude oil over the last couple of days.
Furthermore, the technical analysis has been strong for a while anyway, so there's no real reason to get too cute with this. I think you have a situation where traders just continue to look at this through the prism of a market that's just following the overall trend. Short-term pullbacks will almost certainly be attractive to buyers and the interest rate differential continues to favor Great Britain, although it's not a huge interest rate differential, there is one regardless.
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So, with that and just the simple fact that markets tend to go in the same direction for a few years at a time, I think this is a pair that is somewhat attractive. Underneath current trading near the 1.78 level, we have the 50-day EMA, which of course is an area that has previously been important as both support and resistance. So, I think a lot of market memory can be found in that region. Any pullback at this point in time, I think, opens up the possibility of value hunting. If we were to break down below the 1.77 level, then we could see this market drop down to the 200 day EMA closer to the 1.75 level. But right now, I don't think that's very likely.
I think it's more likely that we break out to the upside and finally clear the 1.8150 level although I'm the first to admit that the momentum to the upside, being relentless over the last week and a half or so, probably needs to cool off a little bit before we make that next big move. Regardless though, as things stand, I'm bullish of this pair.
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