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.
The GBPCAD is on the verge of breaking out.
I wrote about this possible inverse head and shoulders on September 9.
The key takeaway from that post was that GBPCAD was to remain under pressure while below 1.6300.
However, a close above that neckline at 1.6300 would attract buyers.
While GBPCAD is technically still below 1.6300, buyers aren’t backing down.
This is the same principle I used on Sunday to explain why the EURUSD was likely to show strength this week.
See the video I released earlier today if you don’t know what I’m talking about.
As for GBPCAD, the pair could still weaken from here.
This is not me saying the pair will go higher.
But I think it’s wise to respect the recent higher lows GBPCAD has been carving into 1.6300 resistance.
See the chart below to see what I mean.
Those higher lows are a sign of strength.
It also hints at the potential of a break higher over the coming sessions.
Just don’t forget that resistance is resistance until it isn’t, and right now, 1.6300 is the level buyers need to break.
Do that, and GBPCAD could be on its way to 1.6600 and perhaps 1.6800.