23 Mar 2015
GBP/CAD: Defensive undertone - TDS
FXStreet (Guatemala) - Analysts at TD Securities explained that the weak price action in GBP earlier this month heralded the slide in the GBP back towards some fairly key levels for GBP/CAD.
Key Quotes:
"We noted the risk of a drop back to the 1.8650 area—the January 2014 high—which is precisely where the GBP based last week. It remains to be seen whether the doji candle on the daily chart Friday signals a pause in the slide or a reversal; heavy net selling so far today really keeps the GBP undertone defensive."
"Moreover, we rather see the current slide as part of the big, broader, bull break-out that occurred early this year after a year-long consolidation in the cross; as such, we have to allow for an eventual retest of the bull break out (now 1.83)."
Key Quotes:
"We noted the risk of a drop back to the 1.8650 area—the January 2014 high—which is precisely where the GBP based last week. It remains to be seen whether the doji candle on the daily chart Friday signals a pause in the slide or a reversal; heavy net selling so far today really keeps the GBP undertone defensive."
"Moreover, we rather see the current slide as part of the big, broader, bull break-out that occurred early this year after a year-long consolidation in the cross; as such, we have to allow for an eventual retest of the bull break out (now 1.83)."