GBP/CAD May Target 1.7160

The Great Britain pound versus the Canadian dollar currency pair managed to appreciate from 1.6620. Would the pair be able to sustain the gains?

Long-term perspective
The false piercing of the long-time resistance area represented by the level of 1.7812 sent the price in a spiral, thus reaching the next important zone, 1.6620, respectively. But from there, the price retraced all the way to 1.6986. By doing so, it also reentered into the descending channel, but most importantly, it recovered the bullish enthusiasm.
So, as long as the price manages to remain above 1.6986, further advancements are in the cards. The first target is 1.7160. If the price achieves to conquer this double resistance, made up by the level and the ascending trendline, then the next challenge would be the upper line of the descending channel. As a consequence, even if the price confirms the double resistance as support, the advancement might be delayed by the descending upper line. In other words, it is possible for it to be confirmed as resistance, but the depreciation to find support at 1.7160 and start a new upwards movement that passes it. After the price also clears this area, then 1.7499 is exposed.
On the other hand, if the bears push the price back under 1.6986, then the last chance for the bulls would be to confirm the lower line of the descending channel as support and try a new rally from there. If this fails or does not happen, then 1.6620 is a destination.

Short-term perspective
The price got out of the descending trend and established itself just above the level of 1.6959. If the level keeps its role as support, meaning that it allows oscillations to develop above it and renders as false piercings any bearish attempts to drive the price under it, then the first target is represented by 1.7130, with 1.7288 being the next.
However, if the support fails, then 1.6851 is the first objective. Noteworthy is that 1.6851 could still favor the bulls, as it could fuel a rally that manages to confirm 1.6959 as support. But if 1.6851 gives way, then the next stop is 1.6684.

Levels to keep an eye on:

D1: 1.6986 1.7160 1.7499 1.6620
H4: 1.6959 1.7130 1.7288 1.6851 1.6684

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

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