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Short-term Trading Idea FX GBP/CAD – Bull Speculation: Expected Break in 2.032 Resistance

Trading opportunities for currency pair: due to oil prices falling, we should consider a break in the resistance after a bounce to 2.020. If the buyers pass 2.0335 on Monday, keep 2.0500 in your sights. The idea will be valid for just one week and will become invalid at any point if the four-hour candle closes below 2.0150.

As things are at the moment:

The Canadian is sensitive to oil prices. The set-up on the GBP to CAD changed from 4th November after a new phase of oil prices falling. Due to a strengthening of the US dollar as participants expect the Fed to put up the US base rate, in addition to a growth in US oil reserves and mining, Brent fell to $43.99. The pound/Canadian renewed from 2.0011 to 2.0306.

What’s of interest at the moment?

There’s nothing interesting on the old time frames for the moment. My attention has been caught by the four-hour graph. Since 22nd October a strong support has been forming at 2.032; the pound has returned back to this support.

Brent’s $46.50 support has been broken; the closest target is now $42.23. The pound has bounced from 2.032 a few times now. Due to the falling oil price, I expect to see a break in the support. Levels as such, are meant to be broken.

Taking into account that the AO indicator is at the top, it’s likely we’ll see a break after a bounce to 2.020. If the buyers pass 2.0335 on Monday, keep 2.0500 in your sights. The idea will be valid for just one week and will become invalid at any point if the four-hour candle closes below 2.0150.

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Attention:

Forecasts which are made in the review constitute the personal view of the author. Commentaries made do not constitute trade recommendations or guidance for working on financial markets. Alpari bears no responsibility whatsoever for any possible losses (or other forms of damage), whether direct or indirect, which may occur in case of using material published in the review.

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