19 Sep 2013
GBP/CAD lifted up to 1.6526, 45-month highs
FXstreet.com (Chicago) - GBP/CAD spiked to 1.6526 after the American trading session closing printing 45-month highs. The pair retraced back below the 1.65 zone but sustains performance and earlier gains.
BoE and BoC
On a historic and exciting day, the BoE MPC vote hike matched expectations at 0 similarly to the vote cut. With 9 votes unchanged, the bank released its minutes with interest rates maintained at 0.5% and the reassessment of the asset purchase program at 375B sterling. In Canada, the Governor of the Bank of Canada said the recession was now “history” with the regain of “all the jobs lost in the crisis” and the adding of “almost 600,000 more”. Amid strong market reactions to the Fed’s decision not to taper, the pair hovers close to the 1.65 zone registering higher highs and surpassing August 22nd’s spike to the zone.
GBP/CAD Technical Levels
Price action reveals a strong rally fueled by the strengthening of the pound across the board after the USD was crushed post FOMC meeting and Fed’s decision not to taper. Both primary and secondary trends point upward while the short-term price movement is poised to sustain gains after a formidable spike from 1.63 zone. Offered at 1.65, the pair oscillates between supports aligned at 1.6457 (September 16th highs), 1.6425 (September 4th highs) ahead of 1.6383 (September 17th lows) and resistances set at 1.6526 (session highs), 1.6629 (January 18th lows) followed by 1.6672 (November 2010 lows). According to the FXstreet.com trend index, the pair is slightly bullish on one-hour timeframe analysis and fluctuates above the EMA20.
BoE and BoC
On a historic and exciting day, the BoE MPC vote hike matched expectations at 0 similarly to the vote cut. With 9 votes unchanged, the bank released its minutes with interest rates maintained at 0.5% and the reassessment of the asset purchase program at 375B sterling. In Canada, the Governor of the Bank of Canada said the recession was now “history” with the regain of “all the jobs lost in the crisis” and the adding of “almost 600,000 more”. Amid strong market reactions to the Fed’s decision not to taper, the pair hovers close to the 1.65 zone registering higher highs and surpassing August 22nd’s spike to the zone.
GBP/CAD Technical Levels
Price action reveals a strong rally fueled by the strengthening of the pound across the board after the USD was crushed post FOMC meeting and Fed’s decision not to taper. Both primary and secondary trends point upward while the short-term price movement is poised to sustain gains after a formidable spike from 1.63 zone. Offered at 1.65, the pair oscillates between supports aligned at 1.6457 (September 16th highs), 1.6425 (September 4th highs) ahead of 1.6383 (September 17th lows) and resistances set at 1.6526 (session highs), 1.6629 (January 18th lows) followed by 1.6672 (November 2010 lows). According to the FXstreet.com trend index, the pair is slightly bullish on one-hour timeframe analysis and fluctuates above the EMA20.