GBPCAD needs correction, but still might go LONG

15 déc. 2021

GBP has been regaining some strength and CAD has been correcting for a while. I think an upward continuation is still possible, backed up by both Fundamental and Technical

Technicals

• A good reversal has been seen in a Weekly TF
  
• False breakout from Dec.8 daily candle, followed by bullish engulfing on Dec.9 daily candle
  
• Needs to break the current level (area around 1.7007), @38.2 fib in order to push through the supply zone near 50% fib (around 1.7080-1.7120)
  

Fundamentals

• Canada force businesses to prepare for the worst due to huge increase of Omicron cases, worse than Delta. UK had their first recorded death with Omicron, but they did a good job implementing 'Plan B' at the early stage.
  
• UK still fears to have their worst battle with COVID-19 in 4 weeks time.
  
• If BoE will push their rate hike, this will surely materialize. Otherwise, it will be bad for GBP.