I haven’t traded the $GBPCAD much this year. Despite some tremendous swings in price action, the 200-day simple moving average tells us that this pair has essentially been flat all year. And I typically stay away from trendless environments. But with price now above 1.60, the $GBPCAD has very specific behavior at this price level that I think provides opportunity.
While 1.60 is the major psychological level, it is 1.6050 that has been the level to determine future direction for this pair. We can see that when price closes the day above 1.6050, we typically see a 200-pip move higher in the $GBPCAD. Even in a trendless environment, those are price moves that swing traders can certainly take advantage of.
Disclosure: Long at 1.6029