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GBP/CAD – Top of the Range?
The BoE meeting today ended with essentially a dud for sterling as the pair failed to hold its highs after the central bank admitted that economic conditions were better than anticipated after Brexit. The lingering sentiment in the market however, is that growth will become more problematic as the year progresses and UK becomes more serious in its negotiations to leave the European Union.
The loonie on the other hand may be at the end of it decline as oil appears to be bottoming near the $44/bbl level. Another run towards the $50/bbl level could push USD/CAD towards 1.2800 and that in turn should send GBP/CAD lower as well.
Technically GBP/CAD sees a triple top at the 1.7500 level that has been there most the year and as long as the pair respects that trendline the path of least resistance over the near term horizon is to the downside.