The technical layout on the GBP/CAD pair on the daily chart looks interesting. The growth, which lasted since mid-August, led to a test of a well-defined resistance zone in the area of 1.66, i.e. the whole series of lows from last year. There was a strong supply reaction and the price started to go down to the area of the previous low. If the system of increasingly high local lows is broken, we will probably see further drops in the direction of this year’s minima.
The growth was supported by the weakness of the Canadian currency through falling oil prices. At present, there may be a certain return, even if it is corrective. The pound, on the other hand, had previously recorded a strengthening and is now losing ground again as the Brexit deadline approaches and the proposals made by BoJo recently have not been received with enthusiasm. Therefore, if fundamental factors affect the rebound on oil and the issue of Brexit continues to put supply pressure on the Pound, it seems that the price of this currency pair may start to fall.
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