Multiple Confirmations for GBPCAD Long!
Hello traders, this is my analysis for this pair. If you have any questions, please leave them in the comments and I will answer them.
Fundamental view:
GBP has experienced a strong recovery recently with formidable support from the BOE and Borish Johnson. British equities have been recovering and are steadily increasing. Furthermore, economic data such as the PMI released Friday has seen tremendous improvements over the past few months. CAD, on the other hand, has not had the same optimistic sense that GBP has had, mainly due to Trudeau. Oil has been consolidating, as investors remain wary over demand. Given these factors, I see this as a strong buy.
Technical view:
The pair has been in an uptrend since July, rallying from 1.66 to 1.77. The pair was extremely overbought in this zone, and therefore has had corrective measures since August, dropping it to just above 1.72. Drawing various trendlines and key levels, we can see that they all intersect where the current price is, all acting as supports. Furthermore, drawing the fibonacci demonstrates that the price is on the 0.618 zone, yet another confirmation. Given all of these factors, this is an extremely strong zone, so I will be entering for buys targeting previous highs of 1.77 for 350 pips. We might see a rejection of the price at 1.745, but this is still 200 pips
Fundamental view:
GBP has experienced a strong recovery recently with formidable support from the BOE and Borish Johnson. British equities have been recovering and are steadily increasing. Furthermore, economic data such as the PMI released Friday has seen tremendous improvements over the past few months. CAD, on the other hand, has not had the same optimistic sense that GBP has had, mainly due to Trudeau. Oil has been consolidating, as investors remain wary over demand. Given these factors, I see this as a strong buy.
Technical view:
The pair has been in an uptrend since July, rallying from 1.66 to 1.77. The pair was extremely overbought in this zone, and therefore has had corrective measures since August, dropping it to just above 1.72. Drawing various trendlines and key levels, we can see that they all intersect where the current price is, all acting as supports. Furthermore, drawing the fibonacci demonstrates that the price is on the 0.618 zone, yet another confirmation. Given all of these factors, this is an extremely strong zone, so I will be entering for buys targeting previous highs of 1.77 for 350 pips. We might see a rejection of the price at 1.745, but this is still 200 pips
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