GBPCAD Turning LowerThe short idea issued last week in GBPCAD has now hit its first target at 1.7041. The decline from the double top level has seen the market breaking down through the bull channel support with price now testing the 1.7041 level. With the retail market heavily long the pair and with both MACD and RSI bearish, the focus is on further downside near term. With oil prices likely to retain upside support, keeping CAD in demand, look for the current bounce to fail and for selling to resume towards the next target at the 1.6853 level.Keep an Eye OnThe news flow around the Russian invasion of Ukraine remains the key market driver this week. Given how volatile the situation is, markets remain susceptible to two-way shocks. Should today’s peace talks give cause for any optimism, this will likely see oil prices cool off a little, helping lift GBPCAD. However, if talks fail or if the violence escalates this week, GBPCAD is likely to head lower near term as oil prices rally, lifting CAD.
Source: Tickmill
