GBP/CAD Awaits Breakout as Price Tests Major Resistance Zone

Today, we focus on British Pound to Canadian Dollar (GBP/CAD), which has been moving sideways for the past few days. This sideways trend is clearly marked within a red rectangle, reflecting a period of consolidation after an upswing that began on February 11th.

Interestingly, this range-bound movement is not occurring at random. The upper boundary of the rectangle is aligned with a key resistance area, marked in yellow, which has historical significance. In late January, this level acted as support, but after breaking down, it became resistance at the beginning of February. Now, GBP/CAD is testing this level once again, setting up for a decisive move.

Trading Scenarios:

• A breakout above the yellow resistance would generate a strong buy signal, confirming a continuation of the prior uptrend.
• Conversely, a rejection at this resistance, leading to a bounce lower, would serve as a short opportunity, signaling a potential bearish correction.

For now, traders should keep a close eye on how the price reacts to the yellow resistance, as this will determine GBP/CAD’s next major move.

Source: https://www.axiory.com/analytics/technical-analysis/gbp-cad-awaits-breakout-as-price-tests-major-resis