The Great Britain pound versus the Canadian dollar currency pair is at the 1.7000 psychological level. Is there a chance for the bulls to stop the bears in their tracks?
The rally that started from the 1.6542 low, after the price stalled from the 1.8051 peak, ended as a consolidative phase limited by the 1.7705 resistance and the 1.7285 support.
But after the attempts to conquer the 1.7567 level failed altogether, as the bullish efforts were hindered by the 1.7705 intermediate level, the support of 1.7285 gave way, as so did the ascending trendline that starts from 1.6725.
Consequently, the price now sits under the double support etched by the ascending trendline alongside with 1.7132 intermediary level and above the 1.6988 level, also an intermediary one.
The first possible scenario is the one in which the price develops a consolidative state, bounded by 1.7132 and 1.6988, respectively. If this happens, every retracement towards the 1.7132 resistance is to be seen by the bears as an opportunity to join the market, setting their goals for 1.6988 as the small objective, for 1.6868 as their middle one, and 1.6742 as their major.
However, if during this phase, the bulls can bring the price above 1.7132, then they could head for 1.7285.
In the second scenario, the fall continues, targeting the aforementioned levels.
The decline that started from the 1.7705 high, after the major 1.7626 level was confirmed as resistance, took the shape of a descending movement.
As long as the price sits under the trendline, further movements towards the south may continue. For the time being, the intermediary level of 1.6842 is the main target for the bears, if they accomplish to take out the 1.6965 level.
On the other hand, if 1.6965 holds, then the trendline could be pierced and allow the bulls to head for 1.7094 and, later on, for 1.7244.
Levels to keep an eye on:
D1: 1.7132 1.6988 1.6988 1.6868 1.6742 1.7285
H4: 1.6842 1.6965 1.7094 1.7244
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