GBPCAD – Sentiment turning Bearish?
15th June 2017
Is the current bullish bias for GBPCAD to prove short-lived? This week’s price action is suggesting that although a weekly close below 1.7024 is needed as confirmation.
2016 was dominated by a bearish trend that took GBPCAD nearly 25% lower. A double bottom above 1.5700 (October & January) led to a profit taking correction that was strong enough to create a bullish trend in March, But gains were limited – unable to break through a thick Ichimoku Cloud pattern- with May’s peak marked by 3 consecutive weekly Doji patterns.
The drift lower from that area may still be a temporary correction but that will require a sharp GBPCAD bounce before Friday’s New York close. This is because both the spot GBPCAD and the RSI indicator has broken through their moving average levels. IF those breaks are confirmed at the end of the week our Trend Table bias will turn to Negative with immediate potential to 1.6514 and 1.6132.
