GBPCAD has finally cleared a significant consolidation range on the 4H timeframe. After spending several weeks oscillating between 1.8420 and 1.8500, the pair has printed a strong bullish breakout, confirming the shift in intraday sentiment.
Key Technical Points:
-
Range Breakout: The clear close above the 1.8500 horizontal barrier signals that buyers are in control.
-
Target Zone: I am looking for price to reach the major resistance level near 1.8680 – 1.8700. This area previously acted as a strong rejection point in mid-April.
-
The Pullback Scenario: If we see a retracement, the 1.8500 level (previous resistance) should now act as solid support. A successful retest and rejection here would offer a high-probability long entry for those who missed the initial move.
Fundamental Backdrop: The Pound remains resilient due to “higher-for-longer” rate expectations in the UK. While the Canadian Dollar is sensitive to oil price fluctuations, the current technical structure suggests GBP strength is the dominant driver for this pair in the near term.
Trading Plan:
-
Bias: Bullish
-
Primary Target: 1.8685
-
Invalidation: A 4H close back inside the range (below 1.8480).
