Tuesday, July 03, 2018

I Expect A Short Term GBP/CAD Move North

The GBP/CAD pair developed within a consolidation between 1.7290 and 1.7370 for the entirety of the European and Asian trading sessions today.

On the D1 time frame, however, that consolidation is developing right above the support at 1.7250 and it is obvious that for the moment the pair cannot break out below it.

On the H4 time frame there is an RSI divergence which is also developing on the H1 time frame.
My conclusion is that I should expect a short term move north toward 0.7450.

Still, we should be careful and not overlook the fact that on the W1 time frame the tendency is for a depreciation. So the pair may not break out above the resistance at 0.7450 and the downward movement may be renewed.