Market Spotlight: GBPCAD At Key Level Into BOC
GBPCAD Testing 1.7578
The rally in GBPCAD has seen price trading back up to test the 1.7578 level which is a key pivot for the pair having held as resistance upon several tests over the last 18 months. With price having risen explosively over recent days to test the level, the current pause offers breakout opportunities. The retail community is currently holding a more than 90% short position in the pair meaning there is ample room for the upside drive to continue.
Key Data to Watch
Today’s BOC meeting could well prove to be the catalyst for a continued drive higher. With tapering from the BOC already priced in, unless the bank strikes a significantly more optimistic tone its outlook today, there is a risk that CAD reacts negatively. If GBPCAD breaks back above the 1.7578 level there is room for a clear run up to the 1.7760 level and 1.7883 thereafter. Alternatively, should the BOC meeting take a hawkish turn today we could see this current move quickly reverse, taking GBPCAD back down to 1.7433.
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Disclaimer: The material provided is for information purposes only and should not be considered as investment advice. The views, information, or opinions expressed in the text belong solely to the author, and not to the author’s employer, organization, committee or other group or individual or company.
Past performance is not indicative of future results.
High Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% and 75% of retail investor accounts lose money when trading CFDs with Tickmill UK Ltd and Tickmill Europe Ltd respectively. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
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