06/01/23 Daily Currency Strength Analysis: GBP Remains In Focus For More Downside

Fri 6th January 2023

Today, Our Daily Currency Strength Weakness Video is looking at Trading Setups in:

• GBPCAD
• GBPUSD
• USDJPY
• NZDUSD

GBP Still In Focus For More Downside

In today’s currency strength video we identified the opportunity for the GBP to remain weak. Not only this but we identified multiple pairs coming into key areas of support and resistance including GBPUSD, USDJPY and NZDUSD.

However, the one pair that catches the eye for a trading opportunity is GBPCAD.

On the weekly time frame we can see the price has failed at a recent range low, price has since fallen heading towards 1.5900.

The price has recently traded through a consolidation and trendline support below the 1.6200 level. 

Currently the H4 chart is showing an opportunity if the price can trade through the current lows. 

Technical Observations

• The GBP is W1 on the trend traders traders table and the CAD is S3.
• The weekly time frame shows the price rejecting a previous range low and long term trendline.
• If price is going to trade lower the next support level is 1.5900. 
• On the H4 chart we can see price is trading below the 1.6200 handle.
• Currently price is consolidating in a tight trading range, a break of this could offer opportunities short.