GBP/CAD: Hedge funds watching this pair closely
Nice to see some of the big hedge funds reading my modest posts, and I’ve just received a note from one of the significant players who tells me that AUD/USD isn’t the only weekly wedge being monitored by the market. Have a look at the weekly GBP/CAD chart and we can see why this pair is also attracting plenty of interest. There have been some very big option plays here over the recent months across a number of time-frames and there is still plenty of on-going interest.
Obviously short positions would seem favoured given the present set-up but watch out as well for a break above the 200-week MA as that could be the trigger to set-off some very serious short-covering. Not a pair I plan on trading but it’s vitally important to know what the market is looking at as these levels have a huge impact if/when they are tested and broken.