Since Thursday, the Canadian Dollar (CAD) has strengthened significantly, resembling the strength seen in the Euro-Canadian Dollar (EUR/CAD) pair. However, the British Pound (GBP) appears even more bullish than the Euro (EUR), as evidenced by the GBP/USD and GBP/JPY pairs compared to their counterparts, EUR/USD and EUR/JPY, respectively. Despite the strength of the Canadian Dollar, the plan I'm proposing assumes that the GBP has more power than the CAD.
It's crucial to note that this assumption comes with a limitation—anticipating that the price will only descend to the bottom of the rectangle. The basis for this plan is rooted in the belief that the recent breach to the downside was a fakeout. However, if the price breaks below the rectangle, the validity of this assumption diminishes.
It's crucial to note that this assumption comes with a limitation—anticipating that the price will only descend to the bottom of the rectangle. The basis for this plan is rooted in the belief that the recent breach to the downside was a fakeout. However, if the price breaks below the rectangle, the validity of this assumption diminishes.