Daily Price Action
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GBPCAD Heavy Price Action Continues; Breakdown Imminent

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Important: This site uses New York Close Forex Charts so that each 24-hour session starts and ends at 5 pm EST. These charts are essential for trading price action.

GBPCAD is behaving exactly as I thought it might.

I wrote about the heavy price action here on May 30th, a term I use to describe a lack of buying pressure above a key support area.

In the case of GBPCAD, that area is channel support near 1.7020.

Here’s the view from the weekly time frame:

GBPCAD weekly channel

Even the weekly chart looks heavy. Notice how GBPCAD failed to retest channel resistance after hovering above support during the second half of last year.

However, you can see from the daily time frame below how the pair has continued to save itself from closing below this level since retesting it on May 22nd.

But the lack of buying pressure since that time is indicative of an imminent breakdown.

Furthermore, the early May swing high was the pair’s first lower high since it started its gradual but choppy uptrend in August of last year.

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So even if bulls do manage to squeeze GBPCAD higher, I won’t be a buyer.

Instead, I would look to sell near those April lows at 1.7310.

But as it stands, I think the more likely outcome here is a daily close below channel support in the 1.7010/20 region.

Keep in mind that level could be lower. It’s always trickier when you have multiple session lows to deal with as we do with GBPCAD.

I’m referring to 1.6980 and even 1.6900.

Both areas will likely attract buyers on the way down, especially 1.6980.

As such, if you decide to trade the pair, it may be a good idea to keep positions small until GBPCAD sellers clear 1.6980 on a daily closing basis.

I won’t be interested in shorting GBPCAD until we get a convincing close below those 1.6980 lows followed by a retest as new resistance.

If I miss the move lower, so be it. The next runner is just around the corner.

A daily close below 1.6980 would expose the 2018 lows at 1.6600.

Alternatively, if buyers save GBPCAD again and force a squeeze, I will look to sell the pair on a move higher, perhaps in the 1.7310 region.

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GBPCAD heavy price action

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24 comments
Justin Bennett says

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Adebayo saheed says

You are blessed to this generation of fx trader

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    Justin Bennett says

    Cheers.

    Reply
Praise says

thanks very much for the updates.sir Justin.

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    Justin Bennett says

    You’re welcome.

    Reply
Eduardo Murillo says

Do you work with blueberry market

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    Justin Bennett says

    I refer traders to them as they offer New York close charts and provide outstanding customer service, among other things.

    Reply
Oluchukwu says

Great analysis as usual. Great work Justin – and Thank you.

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    Justin Bennett says

    Thanks. And you’re very welcome.

    Reply
Char says

I must say i love your updates Justin, they an amazing analysis. I just joined your what’s up group on the number here last night..

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Olayemi says

Thanks for the update

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    Justin Bennett says

    You’re welcome, Olayemi.

    Reply
stan says

I have a different bias, GBPCAD is shooting up, above 400pip

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    Justin Bennett says

    I welcome opposing views. I’ll stick with mine for now, though.

    Reply
John says

Keep up the good work

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    Justin Bennett says

    Will do, John. Thanks for commenting.

    Reply
Ali says

Thanks justin I will see what is going on with this one.

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    Justin Bennett says

    You’re welcome, Ali.

    Reply
Pastor Alex Ogechi says

Thanks for the good works.

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Samuel says

Thanks in appreciation of your updates.

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Angelo kk says

Daily close below the levels…

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