Saxo Group Videos

Faraday: Why GBP will continue to pound CAD

Faraday Research analyst Thomas Light says GBPCAD is a great example of the weakening in commodity currencies against European currencies. With oil prices low and the Bank of England poised to hike interest rates, he believes sterling will continue pound loonie.

Looking at the weekly candle chart, prices have been trending higher since April, Light says. According to the daily candle chart, Friday’s price action broke and closed above a tight consolidation range.

Light says that the last time this happened, the market rose 300 points and with oil hitting fresh lows on Friday, he sees no reason why GBPCAD cannot put in another strong move.

His strategy is to buy GBPCAD on a pullback to the breakout zone at 2.0400 with a stop below support at 2.0322 and initial targets coming in at 2.0620.

01:07 minutes
Tags: bank of england, british, british pound, canada, canadian dollar, commodities, commodity, commodity currencies, crude, currencies, currency, currency markets, currency pair, currency pairs, currency trading, faraday, faraday research, foreign exchange, forex, forex idea, forex market, forex markets, forex saxo bank, forex trade idea, forex trading, fx, fx markets, fx saxo bank, fx strategy, fx trade, fx trading, fxfore, gbpcad, light, loonie, oil, oil prices, pound, rates, rates decision, saxo, saxo bank, saxo bank currencies, saxo bank forex, saxo bank group, saxo bank saxo tv, saxo bank trading, saxo bank trading floor, saxo bank tradingfloor.com, saxo bank tv, saxo capital markets, saxo forex, saxo traders, saxo trading, saxo tv, saxo tv saxo bank, saxo tv trades, saxo tv trading, saxo tv trading floor, saxo tv tradingfloor, saxo tv tradingfloor.com, saxobank, saxobank.com, saxotrader, saxotv, sterling, thoams light, thomas, thomas light, trade, trade idea, trade ideas, trade view, trader, traders, trading, trading currencies, trading floor, trading forex, trading forex 2015, trading fx, trading idea, trading risks, trading strategy, tradingfloor, tradingfloor saxo bank, tradingfloor saxo tv, tradingfloor.com, tradingfloor.com saxo tv, tradingfloor.com trade ideas, tradingfloorcom

Switch to