The long term outlook is slightly improving, or at least losing its bearish dynamics to a significant extend. The weekly trend is basing out in a broad and volatile pattern above roughly 1.65. The near term trend remains moderately bearish with slight divergences. Attempts to breach the trend line and cloud resistance are expected over the coming days.
If successful, buyers should be able to flip both the near term and longer term trend to (moderately) positive. We suggest tightening stops on existing shorts to 1.7135 and prepare for a longer term exit-short as a whole.
- Near term trend: moderately negative
- Long term trend: neutral/basing
- Outlook: end of long term down trend?
- Strategy: tighten stops / exit-short
- Support: 1.6840 / 1.6610 / 1.65-
- Resistance: 1.7135 / 1.7655 / 1.7910+
- Outlook cancelled/neutralized above 1.7135
Daily chart British Pound / Canadian Dollar (GBP/CAD)
19 March 2018 – Breakout Confirmed
The recent correction is likely to come to an end with the break above the intermediate resistance line around 1.80. more importantly, a new higher base is set above the weekly breakout level which confirms the strong primary uptrend and buying condition of the market.
Our focus is on the Double Bottom price target at ~1.9520. We calculated a major intermediate target at 1.8875, so watch out for pressure around that level as well.
- Primary trend: positive
- Outlook: new primary uptrend, positive
- Strategy: long-entry
- Support: 1.8000 / 1.7720
- Resistance: 1.8360 / 1.8875* / 1.9520* / 2.0620+
- Outlook cancelled/neutralized below 1.7720
Weekly chart British Pound / Canadian Dollar (GBP/CAD)