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GBPCAD Bullish Pin Bar Hints at a Move Higher

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In a last ditch effort last week, GBPCAD surged higher, passing a key level that was expected to act as new resistance. However instead of putting on the brakes, the pair flew past the level to close out the week 100 pips above it.

The level I’m referring to is 1.8665, which has played a significant role of late and is also the 2014 high. At this point the weekly chart still looks quite bullish.

GBPCAD weekly chart:

GBPCAD bullish pin bar at support

You will quickly notice that last week’s surge to hold above 1.8665 produced a large bullish pin bar. This bullish signal comes after the pair has tapered gains from its multi-year high to the tune of 1,000 pips.

This gives me reason to believe that the pair may be ready to continue its march higher despite recently GBP weakness. Of course Friday’s strength in GBPCAD was mostly due to a weakening Canadian Dollar, which will need to continue to be the theme for this market to see higher prices in the days ahead.

Summary: Possible buying opportunity between 1.8665 and 1.8700. Bullish price action on a retest is preferred. Key resistance levels are 1.8960, 1.9116, 1.9260 and 1.9550.

GBPCAD 4 hour wedge

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