False breakout on the GBPCAD?

By Tomasz Wisniewski|

Published: May 16 2023, 11:03 GMT+0

False breakout on the GBPCAD?


A significant battle is currently underway on the GBPCAD, and the fireworks are far from over today. The weak UK job market data caused the GBP to weaken, specifically on a key support level with technical significance. The price has been trading within a rectangle formation above a crucial long-term support at 1.685. While the weak data initiated a bearish attack and breakout attempt, it doesn’t indicate a full-fledged sell signal just yet.

Buyers are currently attempting to reclaim the support level, and the upcoming Canadian CPI number will also impact the pair. Additionally, we remain above the major uptrend line, and a breakout of that line would provide a solid sell signal. If you’re considering buying, a price action confirmation of the price climbing back above the orange area and closing above the support level would be a strong invitation to enter a long position.

Source: https://www.axiory.com/analytics/technical-analysis/false-breakout-on-the-gbpcad