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.

GBPCADiDaily11122017

One thought on “GBPCAD readies for another Bull run”

  1. Ryan Gandalf van Jaarsveld says:

    Bears sold at MM3 at the start of the month. Bulls did enter at MM2 though not enough to take the pair above MPP. The daily chart is not trending – we are in a range between the price you have labeled as the head and 1.7523 (which also marks MM4). I am not saying this is pattern does not have the structure of a head and shoulder pattern or that you or Maryna are wrong – I just wonder why we did not see stronger bids at MM2. Currently, the target for this pair is 1.6341 which is MM1. I also note that Bulls did not buy at WM2 either. Big fat bearish gap at market open. If we come off the weekly target today or tomorrow and head higher I see Bears dropping this at MPP to complete their monthly swing down to MM1/ MS2. Let’s see how it plays out. I am short all Pound pairs except GBPJPY and GBPCAD as per the trade plan I uploaded at Sunday market open.

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