GBPCAD selling momentum easing, potential new uptrend
Trends don't last forever. GBP is showing signs of sellers losing commitment. See chart.
A new uptrend has just taken place and broken the trend line, this may catch out all the traders who entered short over the past few weeks.
Price is extended far beyond it's longer term average, the 200 moving average, providing more support that price should return upwards towards the mean.
The ADX line is falling from extreme highs which I find happens at the end of long trends, which provides support for this downtrend ending.
All other GBP pairs are also appreciating and other CAD pairs are either depreciating or range bound, giving more support to this pair continuing it's new uptrend.
The evidence suggest more in favour of this pair making upwards move. My opinion is bullish at the moment.
A new uptrend has just taken place and broken the trend line, this may catch out all the traders who entered short over the past few weeks.
Price is extended far beyond it's longer term average, the 200 moving average, providing more support that price should return upwards towards the mean.
The ADX line is falling from extreme highs which I find happens at the end of long trends, which provides support for this downtrend ending.
All other GBP pairs are also appreciating and other CAD pairs are either depreciating or range bound, giving more support to this pair continuing it's new uptrend.
The evidence suggest more in favour of this pair making upwards move. My opinion is bullish at the moment.