Sideways Action on GBP/CAD: Awaiting a Breakout

Great respect for horizontal levels is evident on the British Pound to Canadian Dollar chart. The pair has been moving sideways in a rectangle since the 13th of January, with clear green horizontal support and orange horizontal resistance marking the boundaries. This creates a clear roadmap for potential trading opportunities.

Key Levels to Watch

• Green Horizontal Support: Acts as the lower boundary of the rectangle. A break below this level would signal a sell opportunity and a shift in sentiment to bearish.
• Orange Horizontal Resistance: Serves as the upper boundary. A break above this level would provide a buy signal, opening the door for further bullish momentum.

Additional Target

In the event of a breakout above the orange resistance, the red horizontal resistance emerges as the next target. This second resistance level is a crucial area to monitor for potential profit-taking or further bullish developments.

Current Status

For now, the price remains in no man’s land between the green support and orange resistance. Traders are advised to wait for a clear breakout on either side before entering any positions.

Source: https://www.axiory.com/analytics/technical-analysis/sideways-action-on-gbp-cad-awaiting-a-breakout