GBPCAD - 23 January 2023

Jan 23, 2023

GBPCAD 40 day cycle may have just peaked. Looking for lower prices.

The mid-December top is thus far a heavily left translated (early in the cycle) 40 week cycle peak. Because it was early the whole longer term tone is bearish. Price looks to have just tapped out at a 40 day cycle peak and the trough of this cycle is expected in the first week of February. We will monitor closely around 1.62 at the blue 40 day FLD. It may act as support, but if there is a breakdown then we should be in for a deeper decline with the falling 40 week cycle serving as a tailwind.

Christopher Grafton CMT

Chris has been involved in the markets for 20 years. He is the author of Mastering Hurst Cycle Analysis and is an experienced working technician. Chris holds the CMT qualification.