I hope you all had an awesome weekend!
As shown in the weekly chart below, it looks as though something is on the horizon for GBPCAD as price lingers around some pretty heavy resistance.
We’re presented with two possible scenarios – Price either gets rejected, or we see price breaking through resistance. Let’s go down to a daily chart for further analysis.
It looks as though momentum has slowed significantly at our resistance area, which is holding for now. If price can break through our minor support area of 1.75ish we could possibly see a move to 1.73 where it would likely encounter more support, or even a further move through to the 1.68 area. A suitable stop loss area could be just above the recent high, presenting a good R:R ratio. The alternative possibility is that price breaks through resistance.
I will be watching to see how things progress from here.
Have a great week in the markets, traders.
Austen P – Vantage FX
Risk Disclosure: In addition to the website disclaimer below, the material on this page prepared by Vantage FX Pty Ltd does not contain a record of our prices or solicitation to trade. All opinions, news, research, tools, prices or other information is provided as general market commentary and marketing communication – not as investment advice. Consequently, any person acting on it does so entirely at their own risk. The expert writers express their personal opinions and will not assume any responsibility whatsoever for the forex trading account of the reader. We always aim for maximum accuracy and timeliness, and Vantage FX shall not be liable for any loss or damage, consequential or otherwise, which may arise from the use or reliance on this service and its content, inaccurate information or typos. No representation is being made that any results discussed within the report will be achieved, and past performance is not indicative of future performance.
Source: Vantage FX Blog