DislikedGBPCAD. Weekly. I believe GBP is still overvalued & should fall against the USD but the technicals line up better vs CAD imo at present. The weekly CCI/ MACD divergence is still valid & RSI is at its highest in 4 years & usually reverses off these levels. Based on what we saw when we originally got to this point, & what we have seen so far this week, looks it like there is supply here so the 3 year range, as highlighted by a number of posters here already, still looks valid.....Ignored
Right, finally taking this trade. I agree GU is appealing but looking at the weekly the strongest supply is at 6400 but with GCAD we're at supply in a clear range; when GU broke higher in the past 2-3 weeks, GCAD couldn't breakout. W1 & D1 MACD/ CCI divergences all over the place too, which are the basis of anything technical for me. Shorting GCAD may also give a little protection from FOMC volatility. I'm expecting a 3-6 month trade based on the assessment that GBP is overvalued (inflated in part by much of the market thinking gilts were a safehaven), UK & Europe's economy can't sustain UK recovery/ growth & CAD will benefit if there is USD strength, which I believe there will be in the coming months. At least the Canadians have Oil (I know it costs more to produce etc, etc, but goddamnit they have it & are a net exporter). Anyway, some fundamentals along with technicals, worth an entry imo sell @ 1.6440.