Better GDP in the UK helped that currency. Lower CPI and a more dovish BOC has hurt the AUD and CAD.The GBPAUD and GBPCAD are leading the table for the largest % movers for the day. The GBPCAD is up 1.93%. The GBPAUD is up 1.95%. Pretty good moves for each.
What do the big moves do for the technicals for each of the pairs?
Looking at the daily chart of the GBPAUD, it would have been nice to have bought the pair last week when the price tested both the 100 and 200 day MAs at 1.6679. The low last week reached 1.66826. The price is now up to 1.7221. That was a nice level to get in as risk was defined and risk was limited and that was a very nice level.
But what now?
You have to continue to give the control to the buyers. The pair moved above the 1.71258-72 area today. That area has defined a bullish above and bearish below «line in the sand». With the price above, that is the risk level for longs now, or a level to lean against on a dip (with a stop below).
How about the GBPCAD?
Looking at it’s daily chart below, it has been using the 200 day MA (green line in the chart below at 1.6688 to stall the rallies in October). Today that MA was breached after the GDP data and got another boost after the BOC. The move higher has moved right up to a swing area going back to December 2016 that defined a ceiling between 1.69746-92.
In December there were a few highs that stalled a corrective rally. Then in April, there was a break higher. Later in June there was a break back lower. Since that break lower, there were a couple tests in June before moving down to the September low at 1.58357.
That brings us to today….
The rally above the 200 day MA, has moved the price right back to the ceiling and break point at the 1.6974- 92 area. The last 4 hourly bars has stalled in that area with the high being 1.6985.
Is this it? Do the sellers/profit takers lean and the price correct lower? Risk is defined and limited but the 4 hours in the peak has only been able to wander a little way lower. So buyers still have the advantage but lets say the sellers have a low risk level to stick a toe in the water (if they want to play the «sell a high» game)