GBP/CAD: trade idea
By: Dima Chernovolov, FBS
• GBP/CAD rises inside primary impulse wave ③
• Likely to rise further to 1.8800 and 1.9000
GBP/CAD opened this week with the sharp upward gap which follows the earlier breakout of the major resistance level 1.8580 (which has been reversing this currency pair from February of last year). The breakout of this resistance level continues the preceding sharp intermediate impulse (3), which belongs to the 3rd primary impulse wave ③ from last November.
This primary impulse started when the pair reversed up from the major support zone lying between the support level 1.7550 (which also reversed the pair in September of 2014), the lower weekly Bollinger Band and the 38.2% Fibonacci Correction of the earlier upward impulse from March of 2013.
GBP/CAD is likely to rise further inside the active primary impulse wave ③ toward the next resistance levels 1.8800 and 1.9000.