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.
When trading always use a stop loss and calculate the proper risk management for your account. This analysis aims at providing assistance to the forex trading community here at Winners Edge Trading, thereby helping them to make informed trading decisions.
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