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GBPCAD Reverses After Breaking Below Key Handle

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GBPCAD has broken free from the ascending channel that extends from the August low at 1.6605. The breakout occurred yesterday just before the session closed while the retest of the level as new resistance materialized during today’s non-manufacturing PMI, which disappointed at 51.4.

Although the pair has successfully retested the key handle, the price action doesn’t warrant a position just yet. Furthermore, the upcoming Bank of Canada rate statement at 10 am EST makes taking on CAD exposure far too risky for the time being.

As such, I’ll stand aside for now and see how the next 24 hours unfolds. If I can’t get in near current levels, I will look to enter on the next leg lower if one does indeed materialize following tomorrow’s event.

Critical support comes in at 1.70 with a break there exposing the current 2016 low at 1.6605. Alternatively, a close back above former channel support would negate the bearish bias and turn our attention higher.

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GBPCAD bearish rejection

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1 comment
Radu says

CAD will benefit because of OIL price rise . So I’m waiting for a down move in GBPCAD.

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