We end the day with a substantially bullish GBP after reports from Angela Merkel, “saying that the EU will remain united in its approach to Brexit and added that they will think about practical solutions to the Irish backstop problem”
We spiked and closed above some major resistance levels. Going into the rest of the week and continuous meetings with the EU regarding Brexit we need to keep aware of the reports being brought out which cause these movements.
However, from a technical point of view we have closed above the level 1.61800 so I am waiting for a retest of this zone for further upside movement, my upside target would be 1.64000. If any negative news relating to Brexit comes out be aware of the downside movements for the pair. For me to become bearish it would have to to break below 1.60800 where I would see our downside target as 1.58400.
Clear and simple, box in your trade so it can either go two ways then take advantage of whichever direction the market decides to go!FX:GBPCAD