The Great Britain pound versus the Canadian dollar currency pair seems to have trouble continuing the appreciation. Is this only a pause from the bulls or the bears are preparing their next movement?
After the appreciation from the 1.6542 low stalled at the firm 1.7567 level, the price began a descending movement that got very close to the important 1.6724 support level, printing the low of 1.6750.
From there, the bulls tried an appreciation, but their efforts were limited by the 1.6988 intermediary level, and, as a consequence, the price impressed another drop, defining the low of 1.6769.
But as the two lows — 1.6750 and 1.6769 — looked strikingly similar to a double bottom, the bulls got all the determination needed to define a new appreciation. And so they did, as they extended the rise until the 1.7205 high.
From there, the price retraced to find a support level to continue the appreciation from, and 1.6988 seems to have served that purpose. But the rally that followed got stopped at 1.7158, which is under the previous high, hence a lower high. This, in turn, may lead to the bears thinking that it is their turn to ride the market.
So, as long as the ascending trendline — starting from the 1.6769 low — remains intact, the bulls still have the chance to pierce 1.7132. If they succeed validating it as a support, then 1.7285 is their next stop. Even if the trendline is pierced, if 1.6988 holds, the bulls nevertheless can continue their movement towards the north.
But if 1.6988 gives way, then 1.6868 is exposed, and so is 1.6724.
The appreciation that started from 1.6797 extended to as high as 1.7207. But from the 1.6875 higher low to the aforementioned high, the base of a symmetrical triangle seems to be defined.
So, as long as the double support noted by the lower line of the triangle and the 1.6965 level stays intact, the bulls can attempt to pierce the resistance of the triangle. If this happens, and the double resistance — made up of the 1.7094 intermediary level and the upper line of the chart pattern — is passed, then the bulls can eye the 1.7244 major level.
But if the double support to which the 1.6965 level pertains to fails, then the 1.6842 intermediary level is the next bearish target.
Levels to keep an eye on:
D1: 1.7132 1.7285 1.6988 1.6868 1.6724
H4: 1.6965 1.7094 1.7244 1.6842
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