Over the past week, GBPCAD has broken the accelerated upward trend line running from this year’s low. In addition, the quotations were under local support close to 1.8045, which turned into resistance.
The Friday’s price action indicated a rebound of earlier declines, which was also continued until the 3 p.m. of the yesterday’s session. Then the sellers entered the game again and as a result, the session closed “in red” under resistance in vicinity of 1.8045, creating a bearish pin bar.
The pin bar formation here indicates the potential for declines, where the nearest goal seems to be the zone between 1.7757 – 1.7628. In addition, in the second half of the current month, it coincides with the support of the upward channel visible in the daily chart below.
In turn, the closing of daily quotes over the resistance area at 1.8045 and yesterday’s highs, will question the short-term bearish attitude on this pair.