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(Video) GBPCAD to Move 600 Pips Higher?

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Can the British pound move higher against the Canadian dollar?

If so, how high could it go?

Watch the video below to see what I think.

Don’t forget to scroll down for more commentary and an annotated chart.

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From a technical standpoint, GBPCAD has been perfect, at least so far.

I pointed out this inverse head and shoulders back on September 9.

I also discussed the pair on September 12, less than 24 hours before we got the massive 330 pip rally on the 13th.

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The pair even sold off recently from 1.6600, which is an area we’ve been talking about for weeks.

As you can see, this was one of those cases where the market took two weeks to retest the head and shoulders neckline as new support.

And if you watched Saturday’s forecast video, this week’s bounce from the 1.6250 support area shouldn’t be surprising.

That’s the location of former neckline resistance (new support).

There is also a channel in play that could help push GBPCAD higher, perhaps much higher.

Be sure to watch the video above to see what that pattern is and why it matters.

As long as GBPCAD stays above that 1.6230 support region, the bullish potential is intact.

That does not mean the pair will move higher.

I talk about the fact that there are no guarantees in this business a lot, but for good reason.

If buyers can force a move above recent highs around 1.6330, we could see the pair retest 1.6430 as resistance.

Get above that on a daily closing basis and it would open the door to 1.6600.

Keep in mind too that the measured objective for this inverse head and shoulders pattern is around 1.6800.

That’s a very real possibility if buyers can get behind GBPCAD.

In fact, I think a run at 1.6960 isn’t out of the question if the pair can climb back above 1.6600, which is where it failed in September.

Alternatively, a close below the neckline near 1.6230 would negate the bullish outlook and expose 1.5980.

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19 comments
Justin Bennett says

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Reply
Chagulamelvin says

Thanks so much for the update

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    Justin Bennett says

    You’re welcome.

    Reply
Millard Melnyk says

Hey Justin, I read you every week and whenever you post about cable.

I’m wondering about cross-effects to GBPUSD. Are GBPCAD and GBPUSD pretty independent, or do the cousins tend to track?

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    Justin Bennett says

    Cheers. Apart from the obvious that both pairs share the pound, they are two separate currency pairs.

    Reply
    Daniel says

    I am short nd still holding
    The weekly time frame has a morning start

    Reply
Zdravko says

This makes sense and I’m looking forward how the pair will act. But, what about fundament? For example if EU reject (and it si most likely to do so) the Boris’ Brexit proposal. Is there a big chance GBP to drop deep?

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    Justin Bennett says

    I don’t trade based on fundamentals. I’m a 100% technical trader.

    Reply
Segfault says

That is riddiculous. You do learn about pin bars/candlestick patterns near resistance, like the one on 23 September near 1.67, and the other day you present something completely opposite 😀

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    Justin Bennett says

    Completely opposite? I think you have the wrong person. There was also no pin bar on the 23rd.

    I wrote about GBPCAD in early Sept. stating that a bullish breakout was near. A few days later, the pair rallies for 300+ pips.

    Last Saturday, I said 1.6250 was likely to serve as support this week. Here’s the post/video:

    https://dailypriceaction.com/setups/forex-forecast-september-30-october-4-2019/

    Again, I think you have the wrong person.

    Reply
LANCE says

is there not a head and shoulders on the H4 chart taking GBP down to 1.59730 on 3 Sept?

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POLA P says

I like this: ” I talk about the fact that there are no guarantees in this business a lot, but for good reason. “…. thanks!

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POLA P says

” I talk about the fact that there are no guarantees in this business a lot, but for good reason. “…. thanks!

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Yoas says

Thank you

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Robert DeCuir says

THANK YOU for making the videos along with including all your comments and recommendations.

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Jacqueline Amable says

Hello Justin .. I love your daily updates and look forward to your videos. Your explanations are always informative and easy to follow. Thank you so much for your insights.

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Denis says

Hi Justin, thanks for this headsup I appreciate it. I like the way you do it, an excellent pace and not confusing. Keep up the good work.

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SAMMY DANEIL says

i eagerly wait for your videos , it helps me lot to understand this market…keep doing good woks

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Joy says

Thanks

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