GBPCAD, Daily
The pressure on the pound continued today following some relief yesterday. The GBPUSD (Cable) level at 1.30000 remains a very key area, buyers came in around here yesterday but so far today its GBP being sold short and the pair are currently trading at 1.2970 with worries over upcoming Brexit negotiations beginning to weigh significantly.
The GBPCAD breached and broke the key 20 DMA on Friday following the rejection of the 200 DMA last Wednesday and Thursday. Yesterdays close below the 20 DMA and the turn of the Parabolic SAR on Friday suggested further weakness and a SHORT trade was entered on Mondays close at 1.7202. The 50 DMA could provide support before a further move lower to Target 1 at 1.7022 and further down to Target 2 at 1.6830.
Weakness in the Oil price is hampering the CAD currently; however, the on-going uncertainty surrounding the Brexit negotiations continue to undermine the pound.
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Stuart Cowell
Market Analyst
HotForex
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