GBPCAD approaches end of Decline

The GBPCAD is now down 1500 pips since its top around 1.785 on May 5th earlier this year.

Pay attention to this level as well as as the level another 250 pips below. Both of these areas have a strong possibility to produce a bottom.

Trade stängt: målet nått:

The level has offered some great support. The Price has risen 250 pips in a tricking motion.

This is a great place to protect any buys against further advances made by the Canadian Dollar.

A rise of of 250-300 pips indicates a possible reversal point. Should this happen, and the trend line broken with momentum, it is possible, even likely, that the price should drop another 500 pips, to find support around 1.615.

This recent decline in the GBPCAD has been largely due to the rapidly increasing value of the Canadian dollar, which is currently pushing 80.

Long term, if the CAD index fails to stop at 80, we may see ever increasing momentum, eventually toward 90, and this could continue to move pairs crossed with the CAD, such as this one, further down.

This is a good place to close the majority of buy trades, as the price has rallied nearly 300 pips.

Kommentera:

If you should choose not to close your buy orders, at least protect them, as I suspect the CAD bullish run may have yet some gas. The next bullish target would be closer to 1.70.

-dave