The Great Britain pound versus the Canadian Dollar currency pair appreciated beyond 1.6620, which is an important support that recently turned into resistance. Will it be able to turn back into support?
After confirming the weakened support area of 1.5936, the price appreciated, pierced the strict resistance area of 1.6413, and stopped at the old support of 1.6620 (printing the high of 0.6691), from where it retraced thus turning 1.6620 into resistance. Afterward, it dropped under 1.6413, a very important resistance area. It then retraced and confirmed it as resistance, but stopped at the 1.6232 low from where a strong rally began.
The rally pierced the strict and recently confirmed resistance level of 1.6413 and also managed to get above the support turned to resistance of 1.6620, thus — at least for the moment — erasing the resistance role. Now, the next step is for the price to reconfirm it as a support.
So, as long as the price oscillates above 1.6620 (i.e. consolidates above it) or confirms it via a bullish pattern, the price is set on course for 1.6986. Even if the price goes back under 1.6620, 1.6413 has the potential to favor a new upwards leg because of the ascending trend that began at 1.5936.
The price hit the resistance line of the upwards channel. As a result, the price is expected to make a correction. So, every level is potential support. In other words, 1.6571 or 1.6328 have the potential to push the price on the upside, with the first target at 1.6959.
Only if the price pierces the double support made possible by 1.6188 and the lower line of the ascending channel the chances of any appreciation become very slim. In this case, a first target would be represented by 1.5964 and then by 1.5900.
Levels to keep an eye on:
D1: 1.6620 1.6413 1.6986
H4: 1.6571 1.6328 1.6959 1.6188
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