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Market View

Sellers may take the control of GBPCAD

Wednesday, October 10, 2018 10:20 AM GMT

The UK Gross Domestic Product (MoM) confirmed the 0.0%, unrevised from a preliminary estimate of 0.1%, while the Trade Deficit widens to GBP 1.27B. Moreover, the Manufacturing Production output was lower than the expected (Actual: -0.2%, Expected: 0.1%). On the other side, Canada posted its first trade surplus in 20 months.

Looking at the technical aspect of the pair, GBPCAD is performing a rally towards the trendline (T1) since the beginning of the month. In addition to this, the pair is approaching the 72.8% retracement level, forming a confluence of resistances near the area of 1.706 – 1.709.


Furthermore, CCI is following the trendline (T2), while Stochastics is holding well within the oversold zone. Both are probably adding another confirmation for a potential reversal.

Heading to H4 timeframe, the RSI is forming a negative divergence, which maybe points out the upcoming strengthening for the Bears.


On the other hand, if price breaks out the trendline (T1) to the upside, then the scenario is busted.

Always review your own analysis. If there is a confluence between the current study and your own strategy, then you may have even better trading setups.   

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