We hope that you have had a great start to the week! The markets are lining up for some very nice opportunities and one pair we are watching is GBP/CAD.
Looking at the chart below we can see with price was within an ascending wedge which was broken to the downside. This led to a nice long bearish leg down to the area of 1.69870. Price has since rejected from the 1.69870 area and has retraced back to key resistance at 1.72500. At the area of 1.72500 this aligned with our 50% fibonacci retracement level.
Price since being rejected from the confluence area of 1.72500 has headed bearish and is now on the bearish side of our EMA’s and is below our daily support turned resistance at 1.71300.
We are now watching this market on 4 and 2 hour timeframes for a retest of the support turned resistance of 1.71300 for a retest/rejection down to the support of 1.70200.
If price fails to reject and breaks above then we will remain patient. Without the retest and rejection we will not take a short position.
Please remember this is our perspective and you should trade alongside your own analysis.
James at Technical FX70