GBPCAD capped below channel’s resistance

GBPCAD capped below channel’s resistance

After topping out in the 1.9550 regions, the GBPCAD pair has achieved considerable downside actions where it succeeded in tracing potential descending channel as seen on the provided daily graph.

GBPCAD-04-05-2015

The short-lived bounce from 1.5160 territories has been stopped at 1.8650 where the GBPCAD pair has experienced the under-construction resistance line and the upper line of Bollinger bands.

The afore-mentioned cluster resistance zones have been able to push the pair lower below the middle line of Bollinger bands.

In the interim, Stochastic has come out of overbought territories, suggesting weak momentum for the recovery started at 1.8160, while Vortex-trend indicator- has turned into negativity once again.

Accordingly, we believe that the bearish trend started in the last week of February at 1.9550 may continue over upcoming sessions, softly targeting 1.8160 and a break below it will expose the psychological level of 1.80, as there is a lackluster of significant supports bellow 1.8160.

Amir El Araby

Co-Founder & Chief Global Strategist at FxComment.com, with 17 years’ experience in the technical analysis studies for FOREX, Commodities and Indices. Amir El-Araby worked as a mentor for many companies and institutes, where he presented new methods for trading in the financial market. Amir is a member of ESTA (Egyptian Society of Technical Analysts). Amir is also the official partner of Harmonic Trader (Mr Scott Carney) and the official instructor of harmonic trader association for Arab countries.

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