Stocks, oil, and risk currencies gained on Tuesday as the formal go-ahead for US President-elect Joe Biden to begin his transition burnished a November already boosted by Covid-19 vaccines.
Trade idea for GBP/CAD
Information is not investment advice
Last week GBP/CAD tried to rise to the 200-week MA in the 1.7750 area but then turned down and closed around 1.7460, below the highs of December and January. The weekly pivot point is at 1.7535, and as long as the pound is trading below this level, it will remain under pressure.
This week trading started with a bearish gap. The situation is not surprising: a lot of important events await the British pound, so volatility will be elevated. GBP/CAD met the resistance line and turned down. The pair will be under pressure to get to the lower levels, closer to the daily MAs. The levels to watch on the downside include 1.7345 and 1.7230.
EUR/USD fell below 1.1850 after reaching 1.1920 on Monday. The pair consolidated after the initial bearish move.
USD/CAD remains within a downtrend. As a result, selling the pair as it turns down from resistance is the best strategy. Support lies at 1.3125.
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US President-elect Joe Biden proposed a $1.9 trillion stimulus plan to jump-start the world's largest economy and accelerate its response to COVID-19