GBPCAD at Support- Scalps Target 1.8785 Ahead of Key Data
- GBPCAD weekly opening range taking shape just above key support
- Updated targets & invalidation levels
- Event Risk on Tap ThisWeek
Chart Created Using FXCM Marketscope 2.0
- GBCAD testing key near-term support at 1.8785
- Level defined by the weekly ORL / Pitchfork support / 38.2% retracement
- Resistance 1.8965/70 & Former upper MLP (highlighted region)- bearish invalidation
- Support-break targets objectives 1.8669, the November ML & 1.8547
- Note the pending resistance trigger / 40-break would keep short-side in focus
- Event Risk Ahead: UK Unemployment &BoE Minutes tomorrow
Notes:GBPCAD has set a clean weekly opening range just above support at 1.8785. This region is also backed by a band of lower parallels into the 1.87-handle which will serve as our near-term bullish invalidation level. We’ll be looking for break of this range heading deeper into the week with interim resistance eyed at the weekly opening range high / 23.6% retracement at 1.8965/70. A breach above this region targets the 1.90 & 1.9075/80.
Divergence into the lows has us looking for near-term rebound but use caution heading into key event risk tomorrow with both the UK employment report & the release of the BoE minutes on tap followed by Canadian Retail Sales & CPI on Friday. Note that the ATR is still rather wide here with a quarter of the daily average true range yielding profit targets of 40-44pips per scalp.
* 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
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---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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