This pair has a humongous head and shoulder on the week chart and last week ended with a doji on a trend line plus a strong support on both the 4hr and multiple on the h1 . There is also a smaller head and shoulder within that trend coinciding with the same region on the larger head and shoulder. All this confluence is good cause to swing a long position but it's...
based on the areas of consolidation in this pair and the fact everyone is anticipation a short on the GAP the cad could continue in an up trend or the inverse could happen. This is not a definite BUY or SELL right now based on the consolidation we can expect a head and shoulders or a trend continuation.
I believe everyone knows the GBP is over bought and would likely fall especially as it's starting to stagnate.. Hopefully next week would be when we see the value drop as so many people anticipate.and this pattern would indicate potential selling areas.
This potential uptrend is based on the head and shoulder pattern.Currently There are signs of consolidation around the price reversal area so there would most likely be a retest of the support before flying up for a few hundred pips.
