Source: PaxForex Premium Analytics Portal, Technical Insight
Morgan Stanley analysts recommend staying short on the British pound as markets are pricing in too much tightening of Bank of England (BOE) policy this year amid risks to economic growth and rising inflation.
GBP/CAD,D1
Pivot: 1.6690
Analysis:
While the price is below 1.6950, follow the recommendations below:
- Time frame: D1
- Recommendation: short position
- Entry point: 1.6585
- Take Profit 1: 1.6450
- Take Profit 2: 1.6350
Alternative scenario:
If the level 1.6950 is broken-out, follow the recommendations below:
- Time frame: D1
- Recommendation: long position
- Entry point: 1.6950
- Take profit 1: 1.7190
- Take Profit 2: 1.7310
Comment:
RSI shows the possibility of a downtrend in the medium term.
Key levels:
| Resistance | Support |
| 1.7310 | 1.6450 |
| 1.7190 | 1.6350 |
| 1.6950 | 1.6300 |
