GBP/CAD Forecast for December 2, 2020
On the weekly time frame on the GBP/CAD pair chart, we see that from the top, we have a resistance of 1.75000. Since the beginning of the year, we have a side channel in the range of 1.70000-1.75000, and we can continue to expect such a movement of the GBP/CAD pair.
All three moving averages are on the bottom line of the canal, just above 1.70000. In the last two weeks, the pound has been losing strength due to the lockdown and the unresolved Brexit against the Canadian dollar, so we can once again expect the GBP/CAD pair to fall again to lower support.
Looking at the chart on the daily time frame, it forms one triangle framed by two trend lines, and the GBP/CAD pair moves into the corner of the triangle, and then we can expect some bigger movement. Based on moving averages, we can notice that the GBP/CAD pair moves a little below and a little above them.
The bearish scenario is likely to bottom the trend line at 1.70000; some minor obstacle to that goal is 1.72000. Every previous high is a lower high, which can signify that GBP/CAD will continue down to stronger support. Current bearish momentum.
On the four-hour time frame, we see that the GBP/CAD pair moves in the ascending channel and moves in line with it but fails to make it higher high. When we adjust the Fibonacci, we will see that the pair first bounced to 78.6% and is now testing the level of 61.8%, while on the underside and the moving average of MA200 and level 50.0%, we have support at 1.72400.
For some closer levels, the MA200 is our last hurdle after the previous two previous moving averages MA50 and MA100. From the news we have for these two currencies, we can single out: according to the report of Michel Barnier, the chief negotiator with the EU, there has been a stalemate in the negotiations. Although Brexit predominates in the movement of the pound, there are other significant factors in the game.
First and foremost, British regulators have approved the use of the Pfizer / BioNTech coronavirus vaccine – the first such move in the Western world. The British may receive the first doses of the vaccine next week.
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