Doing trend line analysis on GBPCAD, we are interested in seeing a test towards 2.005X and a hold to consider going long for an initial move into 2.018X with potential run higher towards 2.07 handle.
The pair is enjoying a steady uptrend and ever since breaking higher to 1.92 handle in mid June; there’s hardly been any meaningful retrace and this is likely to continue till reaching closer to 2.07 handle based on the weekly chart.
With this in mind we are looking for an initial pull back ideally around to 2.005X handle to go long. We are looking at T2 trend line to get a test and a hold to enter long for a re attempt back towards T1 trend line as an initial target. We feel if we can get a break higher to T1 and get few closes higher; we likely to post new yearly highs.
Fundamentally speaking, GBP overall looks to be finding steady bids in anticipation of a possible rate hikes while CAD just saw rate cuts and possibly more to follow.
Technical also agrees with it and the 8 hrs shows a good layout of what could be the possible outcome.
Hence; we like to see a test getting done to atleast 2.005X and a holding pattern to enter longs for an initial move towards 2.02 handle with potential run for new yearly highs.
Alternatively can look to set shorts under T1 break and a close for the intended target towards 2.005X and going long from there.
GBPCAD 30 min. Main layout