FX.co ★ GBP/CAD

Currency pair GBPCAD - W1 chart. Here on this higher timeframe chart you can see that the price continues to move near the top of the uptrend. The wave structure is forming its sequence upward, the MACD indicator in use is in the upper buy zone and is rising above its signal line. Earlier I expected a decline because there were serious prerequisites for it. Bearish divergence on the MACD indicator, formation of a head and shoulders reversal pattern. The price consolidated below the ascending trendline and the support level 1.8288, which turned into resistance. In short, all the conditions were created to sell. And then the price got stuck and did not want to go down. I assumed that at least they would push the price down to the 23.6 level on the Fibonacci retracement grid, but that did not happen. It turns out this was a trap for sellers. They gave all the conditions to enter short there, the price consolidated, and the 1.8288 level was successfully broken upward. It turned from resistance back into support and the price got stuck there. It tried once more to break this level from above and moved up from it. And judging by the price behavior, they are going to drag it higher; in terms of the scale of this large timeframe, there is not much left to the upside. It is already too late to buy because the top is very close, only possible intraday for a short distance. Here the room above the high seems small, but if you look intraday, the distance is still quite decent. A sell setup is considered only after the high is updated; there will be a potential sell zone. The CCI indicator has already entered the upper overbought zone. Moreover, the price will not be somewhere in the middle, but right at the very peak. Since we have gone above, here we can already switch to the lower timeframes H1–H4 and look for a sell formation, the same mirror level so that support turns into resistance. And it would be better if there is a bearish divergence on the indicators there. But for now we are still looking up; I think the price will rise some more, because if you look at the market as a whole, in my opinion the British pound is showing potential for further strengthening.

On the daily chart the wave structure is forming its sequence upward. The current pullback is probably a second-wave correction within the overall uptrend. Even if not, and there is a move below the low at 1.8691, there is also an ascending trendline there, from which I expect a bounce upward.