CITI TECHS Going long GBPCAD
We are adding a long GBPCAD position at 1.8042 with an initial target of 1.8360 and an extended target of 1.85. The stop is at 1.7925 and we are utilizing 10% of capital for this trade.
– GBPCAD posted a bullish key day off support on Friday and could head back towards the top of the flag pattern around 1.85 (interim target of 1.8360 based on short-term USDCAD and GBPUSD targets).
– USDCAD also posted a bullish key day on Friday off the 55 day moving average and looks likely to grind back up the recent highs around 1.10. A break above there confirms an inverted head and shoulders which would then target 1.1350.
– GBPUSD posted a hammer-like pattern on the weekly chart off the converging channel bottom and 55 week moving average.