Monday, 14 May 2018

GBP/CAD Is Consolidating



After bouncing off from the resistance at 1.8415 and moving to the downside for two months GBP/CAD finally met some support at 1.7360, which coincides with the (MA)89 indicator on the weekly time-frame. The pair has formed a spinning top candlestick at that support on the same time-frame which is a signal for indecision at the very least. The question is whether that indecision will become a reversal. If it does, the pair will probably start moving to the upside towards the resistance at 1.7630. If it breaks out below the aforementioned support level, it could continue falling towards the next major support, which is probably around 1.6760, which is the last low.

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