The Great Britain pound versus the Canadian dollar currency pair dropped after a new attempt to conquer 1.7567 seems to have failed.
The rally from the 1.6542 low, after the 1.6724 level was confirmed as support back in March 2020, managed to extend until the 1.7567 resistance level.
But out of the three attempts to overcome the level, none succeeded, as the bulls were only able to stretch the price until the 1.7705 intermediary level, just for the bears to send it back beneath 1.7567 with relative ease.
This determined a downwards movement that stopped a hair away from the level that started the previous rise, 1.6724, respectively. As they saw the price here, yet again, the bulls made a repeat of the event in March, rotating the price and sending it towards the north.
The final part of the movement was a strong rally, which unfortunately for the bulls met the same fate, as it halted at the 1.7567 level after peaking at 1.7674.
But the bulls seem to have altered their approach this time, as they let the impression that they want first to secure the 1.7445 intermediary level. If they manage to do it, they could once more try to break the 1.7567 barrier.
Of course, one outcome could be that they finally validate 1.7567 as support. If they manage to do this, then they would have to do the same with the intermediary level of 1.7705, to put the bears pay some respect.
But if the price peaks again while attempting to overcome the 1.7567 level, then a double top could be in place. If the potential neck-line — 1.7445 — is validated as resistance, then the bears would once more do what they know best, targeting 1.7288. But if 1.7445 holds as support and invalidates the topping pattern, then the bulls could head for 1.7567 with more confidence.
After the resistance of the symmetrical triangle was pierced, the ascending movement continued, piercing the firm level of 1.7244 and spreading until the 1.7674 peak.
From there, a strong retracement began, one that pulled the price back to the 1.7337 level — the 1.7349 low, to be more exact.
If the bulls conquer 1.7487, then they could hope for doing the same with 1.7626. But if 1.7487 keeps the role of a resistance, then the price could drop to 1.7244.
Levels to keep an eye on:
D1: 1.7445 1.7567 1.7705 1.7288
H4: 1.7487 1.7626 1.7337 1.7244
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