Forex: GBP/CAD – Pound set to lose further ground
Forex pairs in this Article »
GBP/CAD
FXstreet.com (Barcelona) - GBP/CAD has recently seen major downward momentum, with the pair losing a staggering 900 pips at some point, after falling off a cliff from a top at 1.6150 late May to dip as low as 1.5260 in July 8.
As reported by Michael Boutros, Currency Analyst at DailyFX, the sharp sell-off gathered momentum after a downside break of a wedge formation dating back to early 2010, accelerating even further as interest rate expectations from the BoE diminished on a string of disappointing data.
Michael sees today's close below the 61.8% Fib extension at 1.54-handle sets as a sign for further losses for the sterling. "With higher inflation boosting expectations that the Bank of Canada will raise rates, the event risk over the next few days is likely to see the pair lower" he said.
As reported by Michael Boutros, Currency Analyst at DailyFX, the sharp sell-off gathered momentum after a downside break of a wedge formation dating back to early 2010, accelerating even further as interest rate expectations from the BoE diminished on a string of disappointing data.
Michael sees today's close below the 61.8% Fib extension at 1.54-handle sets as a sign for further losses for the sterling. "With higher inflation boosting expectations that the Bank of Canada will raise rates, the event risk over the next few days is likely to see the pair lower" he said.
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