GBP/CAD: Bearish Bias Between 1.78/85 - Scotiabank
Analysts at Scotiabank noted that GBP/CAD has consolidated over the past
two weeks and the sideways movement in the cross has clearly undermined
the broader trend move lower in the pound.
Key Quotes:
"We
see strong resistance overhead at 1.85 now and while we continue to
think that risks are still somewhat skewed towards a push to the
1.78/1.80 region in the next few weeks, we can denote strong, long-term
support for the GBP in the 1.80/1.81 range which may prevent a
significant extension lower.
With the intraday and daily DMI
oscillators slipping into neutral, we think the cross is liable to
continue moving sideways for now.
We remain bearish in a broader sense but feel that the risks of a sharply lower GBP may be moderating at this point."
