The Great Britain pound versus the Canadian dollar currency pair sits in an interesting zone. Is this area a good starting ground for the bulls, or is it already too late for them?
The appreciation that started at the 1.6620 level extended all the way to the long-time resistance area of 1.7811. But it retraced from there, slipping under the intermediary level of 1.7499.
The price is now sitting just above the possible triple support area made possible by the level of 1.7160, the ascending trendline, and the upper line of the descending channel.
If the bulls manage to confirm this area as support, then they could head on for 1.7499, which is their intermediary target, and then for 1.7811, their main objective.
The aforementioned confirmation could also come in the form of a false piercing of the 1.7160 level. However, if the piercing is not false and the level is indeed confirmed as resistance, then the bears could reward themselves with a quick jump towards 1.6986. From there, still, the bulls could turn the situation in their favor by confirming 1.6986 as support. If they fail to do so and the price goes under 1.6986, then the 1.6620 area becomes the target of the bearish profile.
The appreciation that started from the 1.6684 support level extended until the high of 1.7797. The high is now part of a diamond pattern that played its role very well, aiding to the confirmation of 1.7481 as resistance and a decline that extended until the low of 1.7180.
However, from that low, the price made a sharp retracement, a retracement that got it back to the double resistance area etched by the 1.7288 level and the lower descending trendline.
If this double resistance area gets validated, then 1.7130 is the next target. On the other hand, if the bulls pass it and 1.7288 is confirmed as support, then the main target would be represented by the next double resistance area, the one formed by the 1.7481 level and the upper descending trendline starting from the 1.7797 high. Until there, 1.7383 could be an intermediary target.
Levels to keep an eye on:
D1: 1.7160 1.7499 1.7811 1.6986 1.6620
H4: 1.7288 1.7130 1.7481 1.7383
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