The pair has been escalating since the 21st of April, 2015. Based on last Friday’s data, the pair climbed as high as 1.5242, a major resistance level. The downtrend scenario has greater chances of prevailing this week.
In the event that the downside pressures overcome upside ones the pair could decline as low as 1.4414, provided that there is a sufficient break below the 1.4808 and 1.4569 levels.
The stochastic oscillator confirms the bearish trend by indicating that the price has great chances of retracing once again to the downside below 50.5155.
Alternatively, a break above 1.5242 could force the pair toward the 1.5437 level and possibly even higher.
GBP/CAD – Will the Pair Drop this Week?
GBP/CAD was able to retrace once again to the upside since the 17th of April, 2015. Based on last week’s data, the pair has a greater possibility to retrace downwards from 1.8789.
In the event that the bearish pressures overcome bullish ones the pair could drop as low as 1.8148, provided that there is a sufficient break below the 1.8549 and 1.8393 levels respectively.
The stochastic oscillator confirms the bearish scenario by indicating that the price has for some time now stabilized below 80.4124, generating a strong resistance at this level.
In contrast, a break above 1.8789 could be a strong indication that the pair can resume rising toward 1.8911 and even higher.
Major Weekly Events
|
Date |
Time (GMT) |
Event |
Currency |
|
Monday, May 11, 2015 |
11:00 |
United Kingdom - BoE Interest Rate Decision |
GBP |
|
11:00 |
United Kingdom - BoE Asset Purchase Facility |
GBP |
|
|
Tuesday, May 12, 2015 |
14:00 |
United Kingdom - NIESR GDP Estimate (3M) (Apr) |
GBP |
|
Wednesday, May 13, 2015 |
06:00 |
Germany - Gross Domestic Product s.a (QoQ) (Q1) |
EUR |
|
09:00 |
European Union - Gross Domestic Product s.a. (YoY) (Q1) |
EUR |
|
|
09:30 |
United Kingdom - BOE's Governor Carney speech |
GBP |
|
|
09:30 |
United Kingdom - Bank of England Quarterly Inflation Report |
GBP |
|
|
11:30 |
European Union - ECB Monetary Policy Meeting Accounts |
EUR |
|
|
12:30 |
United States - Retail Sales (MoM) (Apr) |
USD |
|
|
12:30 |
United States - Retail Sales ex Autos (MoM) (Apr) |
USD |
|
|
Friday, May 15, 2015 |
03:40 |
Japan - Bank of Japan Governor Kuroda Speech |
JPY |
Please note: The content in this weekly market analysis should not be taken as investment advice. It comprises our personal view.