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.
"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."