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GBP/CAD 1H Chart: Falling WedgeGBP/CAD 1H Chart: Falling Wedge The British Pound is losing value against the Canadian Dollar in falling wedge pattern that began to transform from a descending channel in the middle of last week. At the moment, the wedge consists of multiple reaction highs and three reaction lows, which means that it might be broken already in the nearest future. Even though the graph point out that the breakout should not occur before the pair reaches the monthly S2 at 1.5878, in reality the pattern might be distorted by any more or less significant fundamental event, such as the Jackson Hole Symposium. Given that the northern side is secured a by various technical barriers, such as the 55-, 100- and 200-hour SMAs, the success of the potential surge is doubtful even if it contradicts to the trade patterns theory.
by UnknownUnicorn890690
GBP/CAD 1H Chart: PennantGBP/CAD 1H Chart: Pennant The British Pound is trading against the Canadian Dollar in a pattern similar to pennant that started to form after a six-hour depreciation of the Sterling by 0.69%. Traditionally, pennants themselves are made of symmetrical triangles, but this time it made of an ascending triangle. From the triangle’ point of view, the breakout should occur in the northern direction. But given that it represents only a part of larger, dominant formation, the currency rate is expected to continue to move to the south. The length of the fall most likely is going to fluctuate between 100-120 basis points. A summary of various technical indicators, generally, support this scenario by sending strong sell signals. However, this scenario will break down if the currency rate fails to bypass the weekly S2 at 1.6340.
by UnknownUnicorn890690
GBP/CAD 1H Chart: Channel UpGBP/CAD 1H Chart: Channel Up The British Pound is trading against the Canadian Dollar in a short-term ascending channel that formed in the result of a 78-pips appreciation of the Loonie three days ago. At the moment, it consists of two reaction highs and two reaction lows and, thus, might cease to exist already in the first half of the next week. After reaching the 1.6561 level, the currency rate made an expected rebound and started to slip towards a combined support level set up by the 55- and 100-hour SMAs, channel’s bottom trend-line and the weekly PP at 1.6519. Even though the pair proved to be relatively indifferent towards the above technical indicators, a rebound is still expected to happen. By the way, the pair might bounce off even earlier from the 200-hour SMA near 1.6533.
by UnknownUnicorn890690
GBPCAD Enters New 570 Pip RangeThe GBPCAD reversed course last month after an aggressive downtrend that took the pair 5,200 pips lower in just over a year. While there’s no guarantee the selloff has ended, last week’s close above 1.7540 was a sign that buyers are back. The 1.7540 area has been a crucial factor for the pound cross. It dates back to 2008 but is better known as the level that attracted buyers in September and November of 2014. The level also attracted offers following the June 24th Brexit from last year. With Fridays close, we now have a weekly and monthly close above the 1.7540 handle. As such, any rotation lower toward this area should attract a meaningful bid. Of course, there’s a chance we won’t see such a pullback. The bullish momentum of late has been impressive, and given the suppressed state of the pair over the past thirteen months, I wouldn’t be surprised to see the pair grind higher from here. If that happens and today’s session remains below Friday’s high at 1.7715, we will have a bullish inside bar to work with. And with over 400 pips to the next key resistance at 1.8110, there’s plenty of room for a move higher. With that said, I would prefer to see a pullback to new support. It would reinforce the idea that 1.7540 is indeed new support and would also offer a more favorable risk to reward ratio. As for event risk, the British pound faces several PMI figures between Tuesday and Thursday including those for manufacturing, construction, and services. Canada also reports their Q1 trade balance on Thursday at 8:30 am EST.
by Daily-Price-Action