GBPCAD Head & Shoulders
The rally in GBPCAD off the Q4 2021 lows looks now to have fizzled out with price putting in an interim double top formation around the 1.73 mark. Price has now broken below the neck of this pattern and with both MACD and RSI bearish here, the focus is on a further push lower in the near term. Look for a break of the 1.7041 level to open the way for a run down to the 1.6853 area. With the retail market around 65% long, there is plenty of room for this position to grow and the current downturn to deepen.
Keep An Eye On
GBP is under pressure here from the rebound in USD as well as political uncertainty in the UK over further scandals involving the PM and the government. CAD, meanwhile, is benefitting from the ongoing rally in crude oil. Looking ahead with this week, UK and CPI will be key to watch for this pair also.