GBPCAD - FALSE BREAKDOWN SIGNALS MORE UPSIDESymbol - GBPCAD
CMP - 1.8150
The GBPCAD pair is currently exhibiting a false breakdown of its trend support. In the context of a weakening US dollar, the British pound has entered a rally phase, which is advantageous for the currency pair.
Fundamentally, the outlook is favorable for both the GBP & CAD, given the ongoing depreciation of the dollar. During the current corrective phase, the pair is testing support levels without the potential for further downward movement. This correction is likely to conclude with a false breakdown and subsequent consolidation above the support level, within the established channel. If the bulls manage to maintain defense above the 1.8144 - 1.8230 range, the uptrend is expected to resume.
Key support levels: 1.8150, 1.7978
Key resistance levels: 1.8233, 1.8379
Given the prevailing uptrend, the relative strength of the currency pair amidst a weak dollar, and the occurrence of a false breakdown at support, it is reasonable to conclude that downward price movement is unlikely. Therefore, it is prudent to consider potential continuation of the uptrend.
