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  |   Technicals


FxWirePro: GBP/CAD extends cautious trade ahead of BoE super Thursday

GBP/CAD chart - Trading View 

Spot Analysis:

GBP/CAD was trading largely unchanged at 1.7081 at around 11:25 GMT

Previous Day's High/Low: 1.7123/ 1.7039

Previous Week's High/Low: 1.7361/ 1.6953

Fundamental Overview:

Sterling traders await the Bank of England policy rate decision. Focus will be on whether Governor Andrew Bailey will signal any reduction in the BOE's bond-buying scheme

Chaos around Brexit continues to undermine sterling. In recent developments, the Northern Ireland Agriculture Minister warned of legal action over post-Brexit trading arrangements. 

Technical Analysis:

- Analysis of GMMA indicator shows major and minor trend are bearish

- Price action is below cloud and Chikou span is biased lower

- The pair is trading below 200-DMA and other major moving averages

- Oscillators point to bearish momentum, but oversold conditions warrant some caution

- Recovery attempts find stiff resistance at 200W MA at 1.7092

Major Support and Resistance Levels:

Support - 0.7063 (5-DMA), 1.7032 (76.4% Fib), 1.6950 (Lower BB)

Resistance - 1.7092 (200W MA), 1.7217 (21-EMA), 1.7302 (200-DMA)

Summary: GBP/CAD extends cautious trade ahead of BoE and Scotland elections on Thursday. Technical bias is slightly bearish. That said, retrace above 200W MA will negate any downside in the pair. 

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