GBPCAD: Extending the Recovery - Scotiabank
Research Team at Scotiabank, suggests that the GBPCAD is extending the
May recovery though the 1.85 area, taking out trend resistance off the
2.09 high and 40-day MA at 1.8531 in the process.
Key Quotes
“The
force appears strong in this one now. We noted earlier in the week that
downside risks for the cross were moderating and that a strong close to
the week—above 1.85—should add to upward pressure on the GBP as it
would reflect the highest close in a month and likely tempt trend
followers to jump on the long side of the trade and encourage short
position holders to cover.
Technical evidence of a strong
reversal remains absent but a moderation/consolidation in the selloff
seen since January looks a reasonable expectation now and may allow the
GBP to rise towards 1.88/1.90.”
