GBPCAD Bullish forecasting the path

GBPCAD is giving us short term red recovery against the 1.6931 high. Correction is unfolding as Elliott Wave Zig Zag Pattern with (a)(b)(c) blue inner labeling. So far rally from the lows looks like 5 waves, so we expect to see another 5 waves up in (c) blue leg. Target area is marked as a Blue Box : 1.6729-1.6792 on the chart and that is our selling zone. At the marked area buyers should be ideally taking profits and sellers can appear again. Consequently, we expect to see reaction from that zone. The pair can make either decline toward new lows or larger 3 waves pull back at least. Once pull back reaches 50 Fibs against the (b) blue low, we will make short position risk free ( put SL at BE) and take partial profits. Break of 1.618 fib extension: 1.6792 would invalidated the trade.

Pound to Canadian Dollar forecast by day.
Date Weekday Min Max Rate
10/07 Monday 1.678 1.730 1.704
11/07 Tuesday 1.693 1.745 1.719
12/07 Wednesday 1.700 1.752 1.726
13/07 Thursday 1.699 1.751 1.725
14/07 Friday 1.699 1.751 1.725
17/07 Monday 1.710 1.762 1.736
18/07 Tuesday 1.706 1.758 1.732
19/07 Wednesday 1.699 1.751 1.725
20/07 Thursday 1.709 1.761 1.735
21/07 Friday 1.705 1.757 1.731
24/07 Monday 1.705 1.757 1.731
25/07 Tuesday 1.700 1.752 1.726
26/07 Wednesday 1.691 1.743 1.717
27/07 Thursday 1.690 1.742 1.716
28/07 Friday 1.688 1.740 1.714
31/07 Monday 1.690 1.742 1.716
01/08 Tuesday 1.693 1.745 1.719
02/08 Wednesday 1.702 1.754 1.728
03/08 Thursday 1.709 1.761 1.735
04/08 Friday 1.703 1.755 1.729
07/08 Monday 1.704 1.756 1.730
08/08 Tuesday 1.720 1.772 1.746
09/08 Wednesday 1.718 1.770 1.744
10/08 Thursday 1.712 1.764 1.738

It is a busy week ahead for the GBP to USD. The UK Labour Market Overview and the US CPI Report will set the tone in the first half of the week.

On Wednesday, the BoE will release the Financial Stability Report ahead of the monthly GDP Report on Thursday. Weak GDP numbers and hawkish BoE bets would fuel recessionary jitters and test buyer appetite.

The BRC Retail Sales Monitor (Tues), NIESR GDP Estimate (Thurs), and the RICS House Price Balance (Thurs) are also out. However, the markets will likely brush aside the housing sector data.

註釋

trade is open