This pair is in for a Geo Politically fueled week. Canada threw a wet blanket on the TPP-11 trade deal that was tentatively agreed upon by everyone else at the Vietnam APEC Summit, but now looks to come to terms after they realized they were beginning to resemble their southern neighbor. In the UK, the ‘hate mob’ is after Prime Minister May again, but fake news generally has a short attention span.
Technically, on the daily chart, the pair has completed a recent inverted ‘Head & Shoulder’s reversal pattern, and has now retraced back to a highly visited area of interest(1.6550 – 1.6750) is oversold, and is prime for another Bullish run to the 1.7100 price. I’m waiting for a daily close above the 1.6730 resistance, before looking for a buy entry. If the Geo Political woes get smoothed out by May & Co. then it ‘May’ be smooth sailing getting up to 1.71. If not, I’ll be considering the 1.69 area as a secondary resistance, and continue to buy off of what will then be support back at the 1.6730 price.
A daily close & break below 1.6565 will neutralize this trade plan, until further developments occur. This will probably mean that Canada worked out their GP woes, the UK did not, and the Bears will have control.