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GBPCAD Forecast – October-31-2023

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The GBPCAD pair has recently shown promising signs, closing above the critical 50% Fibonacci retracement level, hinting at a potential uptrend. This level, in close proximity to the significant resistance mark at 1.688, is a key focal point for traders monitoring this currency duo. As we delve deeper into the GBPCAD forecast, it’s worth noting that the Relative Strength Index (RSI) suggests there’s ample space before reaching the overbought territory.

This margin allows for the growth trajectory to possibly extend towards the 61.8% Fibonacci level, a classic target for traders relying on technical analysis.

GBPCAD Forecast - October-31-2023

GBPCAD Forecast – Daily Chart

GBPCAD Forecast: 4H Chart

Enhancing our perspective with a granular view, the 4-hour (4H) chart offers a more detailed insight into the GBPCAD’s behavior. Within this timeframe, the pair has been consistently trading within a bullish channel, reinforcing the optimistic outlook. However, the RSI on this scale is nearing the overbought zone and is exhibiting signs of divergence. This divergence could be a precursor to a shift in momentum, signaling traders to brace for potential corrections.

gbpcad forecast

GBPCAD Forecast – 4H Chart

The anticipated correction could see the GBPCAD pair retracing back to the median line of the current bullish channel. This pullback would be a natural response to the pair’s rapid ascent and could offer a strategic entry point for traders. The subsequent move to watch would be a retest of the broken support level around 1.68, a crucial juncture that could determine the pair’s short-term direction.

Should the GBPCAD manage to sustain its momentum and break past the 1.6881 resistance, it would set a new precedent for the pair’s upward potential. Traders should keep an eye on the interplay between the RSI readings and the price action, as this could offer valuable clues to the pair’s strength and sustainability of the current trend.

  • 31 October 2023
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