GBP/CAD Trade Idea

Pattern formed -Triple Top

Potential Reversal Zone (PRZ)- 2.033

• GBP/CAD has once again retreated after making a high of 2.0325 level. It is currently trading around 2.02390.
   
• UK Core CPI( Y-O-Y) is at +1.1% Versus forecast of +1% and Relative price index (RPI) Y-O-Y came at  0.7%  compared to forecast of 0.9%.
   
• Strong core CPI data gives pound a slight pullback from its low of 2.0199 level but upside is limited due to softer RPI data
   
• Technically GBP/CAD is facing strong trend line support around 2.020 and any break below targets 2.016/2.008/2.
   
• On the higher side major resistance is around 2.33 and break above targets 2.039/2.042.

It is good to sell on rallies around 2.0255-60 with SL around 2.033 for the TP of 2.008/2

R1-2.033

 R2-2.039

R3- 2.0420

Support

S1- 2.020

S2-2.008

S3-2