Forex Marketz Daily Forex News – Fully Markets Update
GBP/CAD – 1.809
The pound is currently trading at 1.809, with resistance as low as 1.8095 and support on high as 1.81025. It is currently trading at the bottom of the bollinger bands and is showing a continuing trend down. Traders can take this opportunity and open a new position on a strong currency pair.
In the above chart we see a pattern emerging very similar to the period of 17th of October through 22 October this year. Trade indicators show that the current pattern will continue. We could see this pair continue as low as 1.79. On a short trade from 1.809 to 1.79 traders could potentially realize a profit of around 2% — margined this could reach as high as 400%! Traders should be cautious as we note in this minute chart:
Trading conditions could reverse for a short period before the drop expected.
Market conditions for the CAD are unsettled — there are conflicts between the Bank of Canada report and US Key Data. The Loonie has been bruised badly by the USD lately and likely will not see this recover quickly. In addition, large M&A such as Tim Hortons by the Burger King chain will fuel this trend further. Meanwhile, the GBP has been performing poorly lately against the USD. Therefore these two currencies which are often heavily affected by the USD will compete with each other — here we see the potential cycle downwards. Trade two ‘Monarchy’ currencies for profit and win!
