In our recent report about the GBP/CAD currency pair we recommended selling the pair and the prices already hit our first target at 1.5927 to make a profit of +220 pips, then the pair returned back to break the price channel and the resistance level last Thursday.
The price channel which we were trading inside was strong because it has 5 tops and 4 bottoms, so when the prices broke upwards from it, the pair rose more on Friday to trade now around 1.6525. The prices recorded the highest level on Friday at 1.6574, close to the resistance level at 1.6611. We expect the price to reach the resistance and make new highs but we have to be careful in case the pair makes a price action pattern on the resistance area. The MACD indicator gave us the buy signal last week.
The Next Few Days
After we saw the prices break up the price channel we should only think of buy orders, as there are no sell opportunities anymore in these levels. We can take a buy position now at the current level 1.6523 and keep our first target at 50% Fibonacci at 1.6850, and the second one at 1.7050. We can take another buy order if the pair declined to the moving average 50 on the daily chart.
Bank of England governor Carney will speak today at the Central Banking Lecture hosted by the International Monetary Fund in Washington, DC and we have the retail sales from the UK on Wednesday, in addition to the CPI and retail sales from Canada on Friday, so we have to be careful due to the news this week.
