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Correlation highlights limited GBPCAD upside

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Looking away from the majors today and to a solid set-up in GBPCAD. This cross not only offers a sound technical outlook in its ‘own rights’ but also lines up with the correlated view (GBPUSD bearish USDCAD bullish – GBPCAD BEARISH)

 

Monthly: The long-term bias remains bullish. With the 50% pullback level at 1.8088 (from 2.0970-1.5205) lining up with the Ichimoku cloud, this is the obvious upside target (barrier). With last month’s Marabuzo level located at 1.7200, and bespoke support at 1.7180, we look for limited downside.  

GBPCAD M IG.png

 

Weekly:  The most important factor in this timeframe is that the current trading zone has been pivotal from Q3/Q4 2014 and Q3 2016.

GBPCAD W IG.png

 

Intraday (four-hours) – The most important timeframe in this counter trend forecast. Looks to be forming a bearish Head and Shoulders pattern. We have posted a DeMark 13 on the daily chart. Bespoke resistance is located at 1.7568. As long as we fail to post a weekly close above this important resistance, the outlook is negative.

GBPCAD 4 IG.png

 

In regards to the PIA analysis, no representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result.

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