GBP/CAD 4H Chart: Channel Down

Risks are skewed to the downside for the Sterling against the Canadian Dollar. After peaking at 2.0928 in the middle of January, the pair decided to choose the losing trend of development. It penetrated all 55, 100 and 200-period moving averages without any difficulties and continued to depreciate quite heavily. Now the pair is playing with the round level of 2.00, and we expect the Pound to depreciate towards the weekly S1 at 1.9730. By crossing this demand, GBP/CAD will pave the way for a drop down to the pattern's green trend-line at 1.9666. There we would estimate some bullish activity, even though SWFX traders assume the pair remains overbought (62% of all trades are long).