Triple resistance cluster in play for GBP/CAD

Steven Mylonas Bottomcatcher.com

GBP/CAD currently trading at 17118.7 up 0.48% on the day at the time of writing. A ‘W’ shape recovery pattern is almost complete from the highs of 16 June last month on the daily time frame. In order to recapture the 16 June highs (17176.5), the bulls will need to first push through this triple resistance cluster at (1), which could also be considered a good selling opportunity. Short term (up to 3 weeks) resistance levels come in at: 17176.5, followed by 17224.5 above that 17293.8 then 17344.0 with 17472.0 in extension.

If resistance holds at (1) immediate support comes in at 17090.8, below that 17016.9, further selling pressure opens the door to stronger support at 16918.5 with 16848.1 below that.

Continued selling pressure would have this pair retest the 30 June lows (16769.3). The widely used MACD indicator is showing signs of curling from its June lows on the daily chart and the relative strength index (RSI) has a reading of 58.68. With all that said, in my opinion the most likely scenario for this trade would be further upside, providing resistance at (1) gives way, for the short term at least.

Author

Steven Mylonas

Bottomcatcher.com

With more than 20 years of experience, Steven has a broad knowledge of market strategies and the markets in general, with a strong focus and understanding of data reading.

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