The Great Britain pound versus the Canadian dollar currency pair is in an appreciation that seems to withstand the bearish attempts that were put into play until now.
After the weakened support area of 1.5936 was eventually confirmed as support, the price entered into an appreciation phase that managed to pass key resistance areas.
Along the way, the bears tried to limit further advancement, as it can be seen from the highs of 1.6691 and 1.7093, respectively. From these peaks, important retracements began, but, in the end, the bulls maintained their pre-established course.
On November 18 the bears tried yet again to turn the situation in their favor by printing a pin-bar at a relatively important resistance area, 1.7160, respectively.
Given the strong bullish context, two outcomes are possible. The first one is for the pin-bar to get invalidated. This will happen if the next candle (or the next two to three) closes above its high. In this case, 1.7499 will be the first target.
The second option for the bulls is to retrace towards 1.6986 and confirm it as support. In this case, 1.7160 will serve as the first target, followed by 1.7499 after 1.7160 gets conquered.
Only the confirmation as resistance of 1.6986 has the potential of triggering a bearish movement towards 1.6620.
The upwards pointing leg that started at 1.6850 seems to be challenged by the 1.7130 resistance level.
But after piercing the line materialized by joining the 1.7093 high with the next lower high, the price seems to have confirmed it as support. This gave the bulls sufficient optimism to make a new push to the upwards. Still, remains to be seen if they will succeed or not.
If 1.7130 gets confirmed as support, then 1.7288 is the next target.
On the other hand, if the price retraces under the downwards pointing trendline, then 1.6959 could serve as another area from which the bulls will attempt a movement towards the north, with the same 1.7288 as target.
Levels to keep an eye on:
D1: 1.7160 1.7499 1.6986 1.6620
H4: 1.7130 1.7288 1.6959
If you have any questions, comments, or opinions regarding the Technical Analysis, feel free to post them using the commentary form below.