Since August this year, the GBPCAD pair has been moving in an upward trend and since setting the minimum level of 1.5850 it has increased over 1400p. After setting last week’s maximum for this year – 1.7270 quotations started to fall and the week ended with a bearish pin bar.

GBPCAD Weekly – two attempts to leave the inside bar failed

When you look at the daily chart (below), you will notice that the daily candle from Thursday (21.11) creates a bearish engulfing pattern, which the price is currently leaving thru the bottom. The MACD oscillator is in a downward phase which increases the chances of further declines on this pair and it would be tantamount to beating the (blue) local trend line.

GBPCAD Daily – price is leaving the bearish engulfing formation

NOTE: tomorrow (Wednesday) at 11:00 pm we will know the results of the survey (YouGov) concerning the upcoming elections in the UK…it will undoubtedly affect the GBP exchange rate…at least temporarily….

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