GBPCAD: Tracking slightly firmer course - Scotiabank

GBPCAD is tracking a slightly firmer course after reversing from below 1.64 last week and weekly patterns suggest some hesitation in the selloff, according to analysts at Scotiabank.

Key Quotes

“We think a significant rally needs to follow this week to suggest any real risk of a reversal and spot is not really showing much inclination to rally back above the mid-1.65s at this point.  A push to the 1.6240 area (76.4% Fib of the 2017 rally) remains a risk and we rather think that a fuller retracement of the 2017 gains back to the 1.60 area remains a risk.   Look to fade minor GBP rebounds while the GBP remains below 1.6725.”