Quick set up here involving GBPCAD - During the last few hours of trading last week GBPCAD broke a level I had been keeping my eye on. The market reacted with an over 120 pip move after reaching it initially on Thursday so we can be confident that the market is aware of it. While this pair is more than likely going to remain for this entire week, initially you will probably see activity.
I will be looking to sell GBPCAD on a retest of the areas that were broken. My ideal range for this retest will be between 2.0250 and 2.03000 - Keep in mind over the last several months how crucial 2.03300 was in keeping price from going higher. This would be the absolute maximum. Watch for price reaction if we move up to these areas for a good opportunity to sell.
Due to the severity of the initial decline, with appropriate consolidation (like a ) this move would have everything it needs to make it to the lower indicated on the chart which would be an almost 800 pip move. I'm not saying for sure we'll get there...but it's a possibility.