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5 Feb 2015
GBP/CAD: Long term bullish - TDS
FXStreet (Guatemala) - GBP/CAD’s strong reversal yesterday, with gains holding into the close augurs positively for the GBP, we think.
Key Quotes:
"The pattern of sell off, stall and recovery has bullish implications (usually a reversal pattern after an extended move lower) but here we rather see this development as a continuation signal—the move up retains a lot of positive momentum."
"Above 1.9130 near-term should see the GBP pressure 1.92 again fairly easily and we would rather see the cross move through this point (50% retracement of the 2007/2010 drop) fairly quickly to keep momentum positive."
"We see support at 1.8770/00 and 1.8645/50 (stronger) and maintain our long-term bull call for 2.02 initially and 2.17 further out."
Key Quotes:
"The pattern of sell off, stall and recovery has bullish implications (usually a reversal pattern after an extended move lower) but here we rather see this development as a continuation signal—the move up retains a lot of positive momentum."
"Above 1.9130 near-term should see the GBP pressure 1.92 again fairly easily and we would rather see the cross move through this point (50% retracement of the 2007/2010 drop) fairly quickly to keep momentum positive."
"We see support at 1.8770/00 and 1.8645/50 (stronger) and maintain our long-term bull call for 2.02 initially and 2.17 further out."