XM Group - Analytics

    XM Group

    599.50 7.00/10
    70% of positive reviews
    Real

    Technical Analysis – GBPCAD downside bias

    GBPCAD declined sharply this week. The double top trend reversal pattern was formed after the market broke the neckline support level at 1.9800. After a retest of this level, prices resumed their fall to reach 1.9050 on Wednesday, the lowest since June 2015.

    Technical indicators suggest GBPCAD has scope for further downside. MACD is below zero, while RSI is below 50 and trending down. The 50-day moving average recently crossed below the 100-day moving average, giving a bearish signal and appears that it will likely cross below the 200-day moving average as well. The key level at 1.9000 comes into view. If it fails to provide support, then a break of this level would accelerate a sell off in GBPCAD. But since RSI has approached oversold levels, this suggests there would be a pause in the decline in the short term.

    Risk Warning: Forex, Commodities, Options and CFDs (OTC Trading) are leveraged products that carry a substantial risk of loss up to your invested capital and may not be suitable for everyone. Please ensure that you fully understand the risks involved and do not invest money you cannot afford to lose. Please refer to our full Risk Disclosure.


    To leave a comment you must or Join us


    By visiting our website and services, you agree to the conditions of use of cookies. Learn more
    I agree