GBPCAD needs correction, but still might go LONG
GBP has been regaining some strength and CAD has been correcting for a while. I think an upward continuation is still possible, backed up by both Fundamental and Technical
Technicals
Fundamentals
Technicals
- A good reversal has been seen in a Weekly TF
- False breakout from Dec.8 daily candle, followed by bullish engulfing on Dec.9 daily candle
- Needs to break the current level (area around 1.7007), @38.2 fib in order to push through the supply zone near 50% fib (around 1.7080-1.7120)
Fundamentals
- Canada force businesses to prepare for the worst due to huge increase of Omicron cases, worse than Delta. UK had their first recorded death with Omicron, but they did a good job implementing 'Plan B' at the early stage.
- UK still fears to have their worst battle with COVID-19 in 4 weeks time.
- If BoE will push their rate hike, this will surely materialize. Otherwise, it will be bad for GBP.
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