- GBP/CAD is trading in an extremely narrow range, struggles to find catalyst for its next move.
- Upside in the pair remains capped at major trendline resistance at 1.7435. We see resumption of upside on break above.
- Break above 100W SMA keeps scope for upside. Technical studies on weekly charts highly bullish.
- RSI and Stochs are highly bullish. We see +ve DMI dominance. Price action is above daily cloud and major moving averages.
- Break above 1.7435 finds next major resistance lies at 38.2% Fib retrace of 2.09720 to 1.57361 fall at 1.7736.
- On the flipside, retrace and close below 100W SMA invalidates bullish bias.
Support levels - 1.7311 (5-DMA), 1.7088 (Ichi cloud), 1.7050 (20-DMA)
Resistance levels - 1.7465 (Nov 2017 highs), 1.7525 (Sept 2016 high), 1.7736 (38.2% Fib retrace of 2.09720 to 1.57361 fall)
Call update: Our previous call is progressing well.
Recommendation: Watch out for break above 1.7435, stay long for targets.
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