GBPCAD: a curious configuration

FX:GBPCAD   British Pound / Canadian Dollar
GBPCAD closed the day in a very curious configuration that deserves being observed for potential action.

The price touches the trendline and on the Weekly (below) and on the Daily.

However, the closer zoom on the H4 timeframe in the main chart shows that the price actually broke out the downwards trendline.

Now the peculiar thing is that this level:
  • Sits on a 50% Fibonacci level taken from the weekly higher 2 times back.
  • Is just above the 50% Fibonacci level taken from the latest lower high.
  • Is just below a Fibonacci cluster made by the one taken from the weekly higher 3 times back and the one taken from the latest lower high.

All in all the configuration is not one we see every day: not that I expect the price to bounce back and forth like a flipper ball, but this is not a moment for me to jump in.

Unless the Fibonacci cluster sends the price decisively below the trendline, the first hours of the market see me #NEUTRAL on this.


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