Weekly Chart
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The pair currently sits inside of a red Ichimoku cloud on the daily chart with Tenkan-sen showing that the consolidation phase is likely to be extended. While almost overlapping with Kijun-sen, Tenkan-sen managed to not cross it from above and defer a potentially bearish signal which would confirm our expectations.
Daily Chart
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Reversal unlikely
The most junior descending channel is currently guiding the rate towards its bottom trend-line at 1.6959 with the tough 1.7014/10 area being the main determinant of whether it is successful in an attempt to reach its ultimate goal. The Elliot Wave Oscillator suggests that the zone will be broken as the freshly developed third wave might extend below. A sudden approach to the lower Bollinger Band implies an oversold Pound in GBP/CAD, a claim completely denied by SWFX sentiment data which shows the pair to be heavily overbought with 70% of all traders being bulls.
Hourly Chart
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While Friday has kicked off slightly bearish with little volatility, Canadian fundamental data shook the markets just moments ago. A set of high impact figures, such as CPI, Core CPI, Retail Sales and Core Retail Sales, which came out come out at 12:30 PM GMT, all caused disappointment for investors as well as experts, pushing the pair north on a negative surprise reaction. Monday is likely to bring some uncertainty over market movements as well, as Stephen Poloz, the Bank of Canada Governor will bring some news in Quebec.
Aggregate Technical Indicators
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