The Gbpcad is a pair that I have been following for quite a while. It has been stuck inside a 400-pip weekly range for quite some time. Support is currently seen holding at 1.6180, above some past resistance from the top of a previous 3-week trading range. Just ahead, at the 1.6350/1.6400 area where we are currently trading is a critical resistance that needs to be breached in order for the pair to move up and confirm the weekly bullish reversal.
This resistance area is marked by a red horizontal line on the chart below. Here, there is a convergence of resistance from a shelf of past support, and the main down trendline.
The next major weekly resistance levels, after the trendline is 1.6500, and then 1.6750. A weekly close above 1.6400 would be a good precursor to the bullish breakout that this pair seems to be trying so hard to move towards. When it decides to make its move, I am planning on taking advantage of the trading opportunities that will follow.
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