Pending GBPCAD Breakout
The GBPCAD has halted its two day advance to reach an intraday low of 1.5946 despite a relatively quiet trade as U.S. traders will be offline in Observance of Presidents Day. Indeed, the pair has failed to break above its descending hourly trend line dating back to February 1st, and has lead to an interest of sellers at that level. It is also worth noting that downside risks are capped by 1.5938. As currency traders await the Bank of England Minutes due out on Wednesday, market participants should not rule out price action holding within its congested area. However, a breakout of its current area could hint at direction heading into the end of the week. All in all, I will look to enter a long position above 1.6050 or a short position on a hourly close below 1.5930.
GBPCAD Hourly Chart
Source: FXCM’s strategy trader – Prepared by Michael Wright
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