I was just asked via Twitter whether I thought a Cup ‘n’ Handle might be setting up on the monthly GBP/CAD so I thought I’d share this analysis here.
The monthly chart does seem to be setting up with a Cup ‘n’ Handle of sorts but it is a bit wonky. This makes it hard to accurately determine the ‘Cup’ height so as to then predict a possible target for any bullish breakout move. The 1.93 level seems like a major S/R level and forms upÂ the left hand side of the ‘Cup’. However, the ‘Handle’ of the pattern on the right hand side starts nearÂ 1.87:
So, I haveÂ taken the more conservative 1.87 level as the ‘Cup’ edge to determine the ‘Cup’ height. This level gives a ‘Cup’ height of about 3,500 pips. Any bullish breakout may then be anticipated to extend up to 3,500 pips from the ‘Handle’, Such a move would take the GBP/CAD up to the region of the 78.6% fib of the last major bear move and near the 2.18 level. I do like that sort of confluence! Any bullish breakout from the ‘Handle’ would be quite likely to target the 1.93 S/R region at least though and would make a good first target:
- there is a bullish Â Cup ‘n’ Handle pattern setting up on the GBP/CAD monthly chart, albeit a wonky one.
- the height of this ‘Cup’ = Â 3,500 pips.
- The bullish breakout target = 3,500 pips
- The target for any bullish move is near 2.18 and the 78.6% fib.
- NB: Wait until after the Scottish Referendum to trade GBP pairs.
BTW…the feedback I got to my reply made me laugh…I think it’s a compliment!
@tradecharting Thanks for the insight, …I really admire your work! Whenever I’m out of ideas I turn to your site,