GBPCAD Scalps Target Major Support- Shorts at Risk Above 1.7850
- GBPCAD testing key support range1.7850/67
- Near-term bias favors long-scalps above this region
- Event risk on tap week
Chart Created Using FXCM Marketscope 2.0
- GBPCAD testing key support confluence 1.7850/67- shorts at risk above this mark
- Subsequent support seen at 1.7780 & 1.7722/23- broader bullish invalidation
- Resistance 1.7968, 1.80 & 1.8124- broader bearish invalidation
- Daily RSI sitting on support trigger – 50-breach would be constructive
- Event Risk Ahead: BoE Interest Rate Decision on Thursday and UK Industrial / Manufacturing Production & Canada Unemployment on Friday
Notes:The focus here is on the rebound off the 1.7850 support barrier as the pari continues to trade within the confines of a well-defined descending Andrew’s Pitchfork off the December highs. Intra-day momentum divergence into the lows followed by a resistance trigger breach shifted the topside into focus earlier today with initial resistance seen at 1.7970 / pitchfork resistance. Ultimately we would be looking for a topside breach of the upper median-line parallel to target a larger scale correction for the GBPCAD.
Bottom line: we’ll be looking for pullbacks in price / resistance trigger-breaks to offer favorable long scalps while above this key zone. A break sub-1.7850 invalidates our topside approach with such a scenario targeting the broader lower median line parallel off the November lows (daily chart), currently around 1.7780. Caution is warranted heading into the later part of the week with UK data likely to fuel added volatility in Sterling based crosses.
* It’s extremely important to give added consideration regarding the timing of intra-day scalps with the opening ranges on a session & hourly basis offering further clarity on intra-day biases.
Relevant Data Releases
Other Setups in Play:
---Written by Michael Boutros, Currency Strategist with DailyFX
For updates on this scalp and more setups follow him on Twitter @MBForex
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