By: Collin Jessup
The GBP/CAD Daily Chart appears to be forming a head & shoulders formation, indicating that price could drop soon. We have closed above a monthly support level of 1.6163 and price is indeed falling a few hours into the Asian session. However we had a very strong bullish candle yesterday indicating prices could go higher. If we break above 1.6225 resistance we could be heading for 1.6300 with a daily resistance zone at 1.6342.
If however, we fall and break the support at 1.6163, we have support around 1.6080, 1.6040 and 1.5978 will be the next lower daily support zone. The overall sentiment of this pair is indeed bullish with 9 of the last 10 trading days being bullish, but we are at a critical level. Price action seems to be reacting positively to this level and could easily go higher.