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The Canadian dollar will be preferred to sterling in the coming days.

The pound to Canadian dollar conversion (GBP/CAD) is forecast to stay under gentle pressure in the coming days, potentially touching 1.8296, although it's not in danger of any serious weakness.

1.8296 is the low reached back in August; it forms the bottom of the multi-month range that has been in place since March.

The 21-day exponential moving average (EMA) is pointed lower and is capping GBP/CAD recoveries, guiding Sterling lower in the short-term.

Downside damage should be limited by GBP/CAD's mean-reverting tendencies: the exchange rate has traded between 1.8296 and 1.89 for most of the year, with the mid-point of 1.85-1.86 capturing the lion's share of action.

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