Over the weekend, the GBP couldn’t help herself with all the negativity from the media. It was simply reams after reams of negative news starting with news that Theresa May leadership is at the cross roads. It was reported that some 40 members of her Tories party were ready to oust her. Anyhow, even if they did and we have Boris Johnson taking the helm, the GBP will tumble. The latter is seen as a Brexit hardliner and his leadership will surely scuttle the ongoing Brexit negotiation.
Remember it was only a couple of weeks ago when Chancellor of Exchequer and Downing Street stated that they were not even considering a “No” deal situation. Already, we have heard Michael Bernier, the EU appointed negotiator tasked with Brexit saying that the EU were preparing for a possibility of a hard divorce.
Certainly some grounds have to be ceded for both parties for an amicable and beneficial break off. This week we have key economic indicators including the BoE focused CPI and Retail sales data. Both of them are forecasted to expand to 3.1% and 0.1% respectively. Irrespective of how positive they are, the UK is grappling with a period of high inflation and stagnant wages threatening to wipe out purchasing power.
To the charts and I’m going to buy the USD going forward. To begin with, the monthly and daily chart all have a buy signal turning from the oversold territory. Pasting a Fibonacci tool from last month’s high low and you realize that price action has corrected 50% and it is time for a correction upward with a higher highs relative to the lower BB printed in the 4HR chart. There is also buy signal in place at that 4HR chart making this a potential low risk high reward trade.
So trading will be as follows:
Buy: 1.27
Stop Loss: 1.2660
Take Profit: 1.29 is ideal
Have a good trading day.

usdcad 4hr chart for November 13, 2017

Source: Dalmas FX

usdcad Daily chart for November 13, 2017

Source: Dalmas FX

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