GBP-CAD might re-enter the historic 4 year range!
UK inflation at 10,5% sparkled a rally in GBP that might continue for several days, pushing GBPCAD into the historical range 1,68 / 1,76.
Inflation data that were published 2 days ago confirmed that UK is still laggin in its figth against inflation. Canada's inflation on the other hand has already decreased substantially since June 2022.
Technically GBP-CAD has been trading in clear range for 4 years: 2018 to 2022, the lowest of this range has already be attacked and now we are aiminng at it again.
If we re-enter the 4 years range we will most likely target the middle of the range at around 1,72.
This offers us a trade with a decent 3:1 risk reward.
Inflation data that were published 2 days ago confirmed that UK is still laggin in its figth against inflation. Canada's inflation on the other hand has already decreased substantially since June 2022.
Technically GBP-CAD has been trading in clear range for 4 years: 2018 to 2022, the lowest of this range has already be attacked and now we are aiminng at it again.
If we re-enter the 4 years range we will most likely target the middle of the range at around 1,72.
This offers us a trade with a decent 3:1 risk reward.
Fulltime trader since 2018.