GbpCad could drop to 1.6
After the low in September last year, GbpCad started to rise with a first very aggressive leg-up of 2500 pips from October to mid-December.
However, after the top from December, the rise was contained in a big rising wedge to August, a double top marked the end of this rise and we have 3 very important breaks following: first, the break under the rising wedge's support, followed by the break of the neckline of the double top and finally the break under important horizontal support of 1.67.
Recently the pair have made a local low in the 1.64 zone and now is in a recovery mood.
Considering the 3 important breaks that you just talked about, we could consider a trend change for this pair and, this recent rise to test the broken support, now resistance, could offer traders an opportunity to join the recently formed bear trend.
In conclusion, traders should look for signs of reversal and set a target at the 1.6 zone for their short trades.
Note: when you set your stop loss, keep in mind that GbpCad is an extremely volatile pair
However, after the top from December, the rise was contained in a big rising wedge to August, a double top marked the end of this rise and we have 3 very important breaks following: first, the break under the rising wedge's support, followed by the break of the neckline of the double top and finally the break under important horizontal support of 1.67.
Recently the pair have made a local low in the 1.64 zone and now is in a recovery mood.
Considering the 3 important breaks that you just talked about, we could consider a trend change for this pair and, this recent rise to test the broken support, now resistance, could offer traders an opportunity to join the recently formed bear trend.
In conclusion, traders should look for signs of reversal and set a target at the 1.6 zone for their short trades.
Note: when you set your stop loss, keep in mind that GbpCad is an extremely volatile pair
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