GBP/CAD: bearish bias between 1.78/85 - Scotiabank

Analysts at Scotiabank noted that GBP/CAD has consolidated over the past two weeks and the sideways movement in the cross has clearly undermined the broader trend move lower in the pound.

Key Quotes:

"We see strong resistance overhead at 1.85 now and while we continue to think that risks are still somewhat skewed towards a push to the 1.78/1.80 region in the next few weeks, we can denote strong, long-term support for the GBP in the 1.80/1.81 range which may prevent a significant extension lower.

With the intraday and daily DMI oscillators slipping into neutral, we think the cross is liable to continue moving sideways for now.

We remain bearish in a broader sense but feel that the risks of a sharply lower GBP may be moderating at this point."