GBPCAD Weekly Technical Outlook
After two years, eight weeks ago, the GBPCAD market returned to the 1.58550 demand zone from where it rallied northwards in September 2017. On the weekly time frame, seven weeks ago, price action rallied northwards from the area and, two weeks ago, entered a horizontal resistance zone around 1.66810. Last week, a bearish engulfing candlestick was printed in the area and, technically, we may see a bearish continuation this week.
Presently, price action is located at a minor support around 1.62720 on the daily time frame. This is also an area where a bullish rally started from on September 13 and the area is in confluence with a rising trendline (blue). Technically, we may see a brief pullback before any southward continuation. A breakdown of the rising trendline is likely to give impetus to a southward drive.
On the H4 time frame, presently, price action is sideways at a confluence of supports. We may see a northward pullback to the immediate minor resistance area around 1.63370/1.64080 (bound by magenta horizontal lines) before a southward continuation.
I may be wrong. Trade safe and prosper.