• Online Forex trading Community

The GBP/CAD has been recovering inside a trend channel

Varengold Bank Research Team from Varengold Wertpapierhandelsbank AG at 01/26/10


Today, we are going to report about important data from the world’s third biggest economy of china. We wish you a wonderful start in the new trading day.

Market review

The overnight Asian stocks and higher yielding currencies fell after a report showed that China’s central bank has driven bill yields higher to reduce the borrowing of funds in the banking system on concern that record loan growth will fan inflation. China is starting to take steps to cool the economy, which grew in the fourth quarter at the fastest pace since 2007. The gross domestic product raised 10.7 percent while consumer prices climbed to a higher-than-expected rate of 1.9 percent in December from a year earlier. The Nikkei 225 Stock Average fell 0.8 percent while the MSCI Asia Pacific Index of regional shares dropped 1 percent. The low-yielding major currencies like the USD and the JPY gained against a lot of major currencies. The JPY climbed versus all its 16 major counter parts while gaining to 126.43 against the EUR, to 89.74 against the USD and to 145.36 versus the GBP. It gained over 120 pips against the GBP as it reached a high at 145.18 after opening the day at 146.66. The USD-Index gained to a high of 78.447 after opening at 78.134. The U.S currency gained to a high of 7.2960 against the SEK, which was the highest point since December 25th of 2009. The USD gained also against the EUR after it reached a high at 1.4076 and a high at 0.8970 versus the AUD, which was the strongest point since the beginning of the year.


After touching the resistance level around 1.0050 between the 19th and 20th of January for the second time, the CAD/CHF crashed down and reached the support line around 0.98. As we can see the market is touching this support for the third time. This might be a sign for a recovery while in addition the RSI indicator seems to give a significant sign that the market will return to the upside.


After having a bad start at the beginning of the year, the GBP/CAD has been recovering inside a trend channel. As you can see, the weekly pivot points have shown a significant analysis during this time. At the moment, the market is trading close under the first weekly resistance and the upper line of the bullish channel. If the market doesn’t break these two lines, it may come back to the lower line of the upward trend channel.

Main Menu