Support of 1.6986 Still Holds on GBP/CAD

The Great Britain pound versus the Canadian dollar currency pair respects some very important lines. But which are the new perspectives concerning the old lines?

Long-term perspective
The ascending movement that started after the major support area of 1.5336 was confirmed extended almost to the 1.8103 level, retracing shortly after, thus rendering the piercing of the long-time resistance area of 1.7811 as a false one.
The retracement became a plunge that pierced the ascending support line but, similarly to March 3, the piercing was invalidated by the 1.6986 level, which stood still as support.
This allowed a bullish candle to form, one with the low at around the 1.6986 level and the high around the 1.7160 level.
As long as the price oscillates above 1.6986, the bulls are expected to engage in further advancement. As a consequence, 1.7160 is their first target and, if confirmed as support, it may trigger further movement towards the north, 1.7499 being a prime target. However, between 1.7160 and 1.7499 there is a descending trendline that could inflict some bearish pressure. This line may be the catalyst for the confirmation of 1.7160 as support after it is pierced by the bulls, but could also play a role from the bearish perspective and lead to a strong downwards movement.
In case this happens, if the descending trendline holds and sends the price back under 1.7160, respectively, then the bears may be tempted to further push the price and ultimately break 1.6986.
If 1.6986 gets confirmed as resistance, then 1.6620 is the next bearish target. But if this ends up as being a false bearish breakout and 1.6986 remains support, then 1.7499 would be the main focus.

Short-term perspective
After the level of 1.8047 was confirmed as resistance, a strong depreciation came into being.
The price is now consolidating after yet another leg down. This phase began after the retracement from 1.6959 and concentrates around the 1.7130 level.
If 1.7130 gets confirmed as support, then the 1.7288 level may be the first target, possibly with 1.7383 following. On the other hand, if further appreciation attempts fail, then 1.6959 is the main bearish aim.

Levels to keep an eye on:

D1: 1.6986 1.7160 1.7499 1.6620
H4: 1.7130 1.7288 1.7383 1.6959

If you have any questions, comments, or opinions regarding the Technical Analysis, feel free to post them using the commentary form below.

Leave a Reply

Your email address will not be published. Required fields are marked *

six + three =