The Great Britain pound versus the Canadian dollar currency pair rotated and began a depreciation. Is this a small correction, or the bears truly took over?
After the double bottom chart pattern etched by the 1.6750 and 1.6769 lows, respectively, the price started an appreciation that reached the firm 1.7567 resistance level.
Upon arrival, the bulls attempted to conquer the level but were only able to print the 1.7674 high before the price retraced under it — as it did in March, April, and May.
However, the 1.7285 intermediary level aided the bulls, providing them with the support area they needed. As a consequence, after printing the 1.7216 low, the bulls noted on the chart yet another rise. However, the 1.7562 was loath to cede, stopping the advancement a hair away before being undermined.
The 1.7445 intermediary level failed to serve the bulls, as the decline traversed it with relative ease. However, the ascending trendline that starts from the 1.6978 low contains the price within an ascending trend.
So, as long as the drop gets stopped in its tracks before or upon touching the trendline, then the bulls may have another shot to compromise — at least for the time being — the resistance role that the 1.7567 level is assuming.
On the other hand, if the price reaches the 1.7285 intermediary level, then the situation may continue to unfold like a flat, limited by 1.7285 as support and 1.7567 as resistance. If from this flat, the price continues towards the south, then 1.7132 is — for the moment — the first target.
On the other hand, if after a rise from within the above mentioned flat or after the validation of the ascending trendline as support the 1.7567 is conquered, then 1.7705 is the first mark.
The decline that started from the 1.7674 peak extended to as low as 1.7216. From there, the resulting appreciation towered at 1.7554, before returning under the 1.7489 intermediary level.
If the bulls manage to validate 1.7337 as support, then they have another opportunity to secure 1.7487 as support, which if they do, they can spread the movement until the 1.7626 firm level.
On the flip side, if 1.7337 concedes, then the price may revisit the major 1.7244 support zone.
Levels to keep an eye on:
D1: 1.7285 1.7567 1.7132 1.7705
H4: 1.7337 1.7487 1.7626 1.7244
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