Today, the British pound is under pressure against most of its peers and the GBPUSD is threatening to trade below its YTD low, while the FTSE 100 has ignored the report altogether. The pound sterling is also under pressure vs. the Canadian dollar (GBPCAD), and at the time of writing the price was just 40 pips away from its year-to-date low at 1.5955. On a break to the YTD low, GBPCAD might slide to its next support level at the 2017 low of 1.5832. Beyond the 2017 low we find the 2016 low at 1.5734, and below that level, the 2013 low at 1.5253.
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As the price trend is bearish on concerns of a no-deal Brexit on October 31, it seems likely that the GBPCAD will continue to slide lower as traders and speculators bet on lower prices, but also as bossiness hedge their exposure by short-sell in the GBP.
For the selling pressure to abate, and the short-term trend to turn neutral the price would need to trade above the August 7 high of 1.6231.Download our latest quarterly market outlook for our longer-term trade ideas.
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