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Market Analysis

Home » Technical Analysis » Daily » GBPCAD Plunges, Gold Flat After US Job Report

GBPCAD Plunges, Gold Flat After US Job Report

Posted by FXTimes in Daily - August 10th, 2015 8:57 am GMT

pound-sterling-forecast-GBP[1]

The GBP/CAD extended its decline down to 2.0204 on Friday, as Pound maintained its weekly tone against all of its major rivals, although the pair bounced following the release of the US Baker Hughes report, showing that oil drilling rose for a third straight week, sending WTI to a fresh 6-week low of 43.69, dragging Canadian dollar lower.

The cross ended the week with losses, but flat on Friday, with the daily candle showing a long lower wick, suggesting buying interest may continue surging on dips.

gbpcad 10

Technically, the 4 hours chart however, maintains a strong bearish tone, with the price below a bearish 20 SMA and the technical indicators resuming their declines after correcting oversold levels.

Meanwhile Gold prices closed the week on a flat note, with spot unchanged weekly basis around $ 1,094 a troy ounce. On Friday, the metal initially fell to the base of the daily triangle that has contained the price ever since bottoming at 1,071 in July, to later bounce and found selling interest at the top of the same figure, maintaining its range trading for one more week.

gold 10

The lull physical demand in India, and fears the FED will raise its rates as soon as next September, have kept the commodity under pressure for most  of the last three months. Now in a consolidative stage, the daily chart shows that the 20 SMA has extended its bearish slope down to the 1,100 region, from where the price retreated on Friday, whilst the technical indicators continue to correct higher from extreme oversold levels, suggesting the downward potential has diminished somehow.

In the shorter term, the 4 hours chart shows that the price is above a horizontal 20 SMA, whilst the technical indicators are turning lower above their mid-lines, still within neutral territory. Some follow through any of the trend lines that form the figure is now required to see a cleared directional strength in the metal.

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