Weekly Technical Outlook: GBP/CAD; Market Forecasts for July 6th – July 10th

  • Stop loss 1.9685   
  • Entry level 1.954
  • First Target at 1.9438
  • Next targets to test at 1.9306, 1.9209

 

Weekly Technical Outlook: GBP/CAD; Market Forecasts for July 6th – July 10th
Weekly Technical Outlook: GBP/CAD; Market Forecasts for July 6th – July 10th
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Technical Analysis

 

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GBP/CAD’s fall from 1.9751 to extended lower for this week. We’re favouring the case that rise from 1.81472 is finished at 1.9751. With price action signalling bearish momentum with formation of two bar reversal and pin bar rejection at end of last week, GBP/CAD has also been rejected on trend line with surrounding area holding resistance area. Initial bias remains on the downside this week. A break of 1.954 will confirm this bearish case. Nonetheless, above 1.9685 resistances will dampen this bearish view.

Over all in the bigger picture, current development argues that medium term fall from 1.9751 will extend to 1.9438. A break here is a correction to another leg to 1.9306 and down trend from this level is still expected to extend for a new low below 1.9209 later. In the longer term picture, we’re sticking on to the view that price actions means bearish on pair, firstly, 1.9438 shouldn’t be the end point of the down trend yet and a new low is expected. Secondly, as the next fall could be 1.9306, the breach of 1.9209 could be shallow and brief from long term point of view and we’ll then see a more sustainable rebound.

Economic

  • NIESR GDP Estimate (3M)
  • BoE Asset Purchase Facility along with BoE Interest Rate Decision for UK
  • Ivey Purchasing Managers Index
  • Building Permits
  • Bank of Canada Business Outlook Survey and later Housing Starts
  • Unemployment Rate with Net Change in Employment

 

Area of Interest

  • Resistance level at 1.9751levels finding strong resistance with pair rejecting the levels at close last week.
  • Two bar reversal and Pin bar at resistance also the flip area.
  • Pair finding resistance on trend line and unable to break past them and closed below at close of trade.
  • Key area to target to the down side shall be at 1.9209 for the week.

For more detailed analysis from the author, please visit NoaFX.

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