Daily Price Action

GBPCAD Rockets to New Seven-Year High


The Canadian dollar has sold off aggressively to start the week, and that’s putting it nicely. With this weakness of course comes strength in pairs such as USDCAD and GBPCAD.

I mentioned the potential for a USDCAD breakout on Monday which was confirmed during yesterday’s session. At the same time GBPCAD also confirmed a breakout scenario with fresh multi-year highs.

The close at 1.9617 puts the pair firmly above the previous seven-year high at 1.9555. Basic technical analysis tells us that this level should now become support, which offers two ways to approach a long opportunity.

The more aggressive trader can look to buy a blind retest of the 1.9555 area as new support. More conservative traders on the other hand can watch for bullish price action on the 4 hour or daily time frame.

Levels of interest to the upside include 1.9660, 1.9826 as well as the trend line that extends off of the February 2014 high. A retest of the key 2.00 handle could also be a very real possibility during the second half of 2015.

Summary: Opportunity to buy a retest of the former multi-year high at 1.9555. Key resistance comes in at 1.9660 and 1.9826.

GBPCAD bullish breakout on the daily time frame

Leave a Comment:

Ben says

Very useful & easy to understand ! awesome analysis. Appreciate it alot Justin.

    Justin Bennett says

    You’re welcome, Ben. Always best to keep it simple. 🙂



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