There's a lot of doom and gloom surrounding the GBP with Brexit and Scottish Elections noise hurting the price plus the weak Services PMI print but from a technical viewpoint GBP/CAD looks mildly BULLISH.
As long as we stay above 1.6217 price could look to take out 1.6628 which opens a move to then 200 sma.
Price is currently held under the 100 sma so the BULLS...
Here we have broken the trend line to the upside however be cautious, we need to close
above 1.65 on the daily, to establish the bulls coming into play and the trade to be active . Some key data this week BOC rate statement which is expected to be cautious and much of the same tone ,CAD - GDP - M/M, GBP Manufacturing PMI,Construction PMI & Services PMI
Based on structure there is a trade setup with good risk reward , grey zone is from daily timeframe , and blue zone is in hourly zone.
In the blue zone you can look for entry reasons accourding to your trade plan , mby in smaller time frame.
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.
As you can see in the trade, I've placed the trendline showing the current momentum which is a downtrend but however, it turns into sideways momentum.
Two double bottoms appear as well some strong upward move.
Hoping to take profit around the 1.75 area and stop loss is placed at 1.58338.
Just a noobie btw so I don't want no shtick from this but do however...
GBPCAD came down to support.
GBP is extended to the downside and CAD has been the strongest pair for the last day other than CHF.
I missed the GBPCHF long but I'm happy to go long this one after the retest of the signal candle
GBPCAD came down to an oversold level and a signal to go long came yesterday.
I have entered on the retest of the signal today.
CAD and GBP will get thrown around by the USDCAD and GBPUSD but I see strength creeping into GBP and Weakness creeping further into CAD hence why I went long this pair.