Mihai_Iacob

GbpCad could drop from resistance (1k pips potential)

Short
FX:GBPCAD   Livre sterling / Dollar canadien
Since the bottom just above 1.4 in September, GbpCad has risen strongly, gaining around 2.8k pips.
At this moment, however, the pair is facing a very strong resistance zone, a zone that acted as support for more than 3 years till the break under it in this year's spring.
I expect this zone to hold and cap gains for the pair in the future and if this holds true, GbpCad could roll back down to under 1.6 support.
Last week's candle is a reversal one and traders could look for selling opportunities against its high.
As I said, the target could be set at 1.58 support and a good sell entry can have a 1k pips reward


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