GBPCAD has once again tapped into a key daily demand zone that's held strong multiple times this year, forming a reliable support base around the 1.8200–1.8300 level. Price action has consistently respected this area, creating a clear bullish structure of higher lows following each test. The recent bounce indicates buyer interest is still strong, and I’ve entered long positions here with a high conviction that the bullish leg is about to resume. The risk-to-reward ratio on this setup is highly favorable, with upside potential targeting the 1.9150–1.9200 region.
From a macro perspective, the British pound remains supported by the Bank of England’s hawkish stance. Inflationary pressure in the UK remains sticky, keeping the door open for further rate hikes or at least prolonged tight monetary policy. On the flip side, the Canadian dollar is under slight pressure due to falling crude oil prices and the Bank of Canada's relatively more dovish outlook in recent statements, despite recent CPI upticks. This divergence in policy bias adds tailwind to the GBPCAD bullish bias.
Technically, this pair is respecting market structure with precision. Each bounce from the marked support zones has led to meaningful rallies, and current price behavior is following the same playbook. The consolidation over the past few sessions suggests accumulation, with a bullish breakout likely to follow. The marked blue target zone aligns with a clean price inefficiency and liquidity pool on the left side of the chart.
With momentum building and fundamental drivers favoring GBP strength, I expect a continuation move toward 1.9150 in the coming weeks. Patience and position management are key here, but the setup remains valid and in profit. Traders watching this zone should be alert for bullish confirmations and volume spikes to ride the next impulsive wave.
From a macro perspective, the British pound remains supported by the Bank of England’s hawkish stance. Inflationary pressure in the UK remains sticky, keeping the door open for further rate hikes or at least prolonged tight monetary policy. On the flip side, the Canadian dollar is under slight pressure due to falling crude oil prices and the Bank of Canada's relatively more dovish outlook in recent statements, despite recent CPI upticks. This divergence in policy bias adds tailwind to the GBPCAD bullish bias.
Technically, this pair is respecting market structure with precision. Each bounce from the marked support zones has led to meaningful rallies, and current price behavior is following the same playbook. The consolidation over the past few sessions suggests accumulation, with a bullish breakout likely to follow. The marked blue target zone aligns with a clean price inefficiency and liquidity pool on the left side of the chart.
With momentum building and fundamental drivers favoring GBP strength, I expect a continuation move toward 1.9150 in the coming weeks. Patience and position management are key here, but the setup remains valid and in profit. Traders watching this zone should be alert for bullish confirmations and volume spikes to ride the next impulsive wave.
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Join our Forex Community Telegram group and connect with thousands of traders.
Hit the Link below
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.