GBP/CAD: sell target - 2.0360
By: Dmitriy Chernovolov
- GBP/CAD reversed from resistance zone
- Next sell target - 2.0360
GBP/CAD recently reversed down strongly from the major resistance zone lying between the resistance levels 2.1000 and 2.0800 (this resistance area earlier reversed the previous sharp impulse waves (1) in August and 1 in December, as can be seen below). This resistance zone was strengthened by the upper daily Bollinger Band. The downward reversal from this resistance zone created the daily Japanese candlesticks reversal pattern Falling Star.
With the clear bearish divergence visible on the daily Momentum indicator - GBP/CAD is likely to fall further in the active minor corrective wave (ii) toward the next sell target at the support level 2.0360 (low of previous wave 2).