GBP/CAD Forecast Today 15/11: Pound Bounces (Chart)


(MENAFN- Daily Forex)

  • During my daily analysis of the minor currency pairs around the world, the GBP/CAD pair has caught my attention, because we have turned around to form a bit of a hammer.
  • This is a market that has recently been consolidating, and it looks as if we are going to continue to do more of the same as we are forming a bit of a hammer.
  • The 1.7700 level is an area that seems to be offering a little bit of support, but ultimately, I think this is a situation where we have gotten a little oversold, and it looks like more of the same noise should continue.

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The technical analysis for this pair is bullish in the short term, but over the last several months it has been more or less sideways. I think that probably continues to be the case for the next several months, as these 2 currencies are going to struggle at the hands of the US dollar. That being said, it's probably worth noting that the stochastic oscillator is crossing over in the oversold condition, and therefore I think you've got a situation where buyers may come in and try to pick up this market from the short term perspective. That being said, I think that the 50 Day EMA above could end up being a little bit of a target and possibly even a bit of a barrier.

If we were to break above the 50 Day EMA, then the 1.81 level above will be your target next, and of course ended up being a significant resistance barrier, based upon the action that we had seen previously. Anything above there would change everything, just as a breakdown below the 1.77 level could as well. In that environment, you would see the British pound fall apart against the Canadian dollar, perhaps reaching down to the 200 Day EMA in order to find technical support based upon that indicator.

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