An interesting technical and fundamental situation takes place on the GBP/CAD pair. The key theme for the GBP is of course the trade agreement with the EU. The valuation of the Canadian dollar, in turn, is heavily influenced by the movement of oil correlated with it. Here the situation has improved, following information on COVID-19 vaccines. A certain risk for the longer term may be the OPEC Cartel meeting at the end of the month.
The market is already valuing the cuttings, but if the decision is too modest, both the oil and the Canadian dollar may be weakened. It is opposite on the pound. There is so much faith in a trade agreement with the EU that the British currency has remained fairly strong for a long time. Not even the failure of the talks until 15 November has brought a downward pressure on the pound.
There are reports in the British media of a game on time, and everything seems to indicate that it is about making further concessions, and the agreement will come to fruition at the last minute. Judging by the surprisingly good moods on the pound, the GBP/CAD technique can be conducive to buyers. The week’s chart represents a consolidation in which there is an upward movement.
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