GBP/CAD: broader bear trend getting back on track - Scotiabank

GBP/CAD break under the base today at 1.7296 suggests the broader bear trend is getting back on track, according to Scotiabank analysts. They target support now at 1.67.

Key Quotes

“Heavy losses today so far are more in line with our underlying view here that recent price action in the GBP represents a consolidation of the heavy losses seen through June ahead of another push lower.”

“The upper end of consolidation band has been fluid but the GBP failed to make any sort of impression on levels that we thought were needed to stabilize the market (1.75+, with the 40-day MA at 1.7576).”

“The broader pattern of trade since the early July low reflects a bear wedge pattern; the break under the base today at 1.7296 suggests the broader bear trend is getting back on track. We target support now at 1.67 and suspect that the longer-term decline in the GBP could extend to the 1.50/1.60 area.”