The Great Britain pound versus the Canadian dollar currency pair shifted direction. Could this be a sustainable rise?
After the double bottom marked by the 1.6750 and 1.6769 lows, respectively, validated the firm 1.6724 support area, the price started a convincing appreciation phase.
At first, the rally was limited by the 1.7132 intermediary level, thus printing the 1.7207 high. As a result, a consolidation stage — with 1.6988 as support — took shape.
However, after the 1.6978 low rejected the support, the price noted a rally that defined the 1.7674 high. Later on, the high would be part of the false piercing of the 1.7567 level.
As the bears pushed the prices further, they engraved the 1.7216 low. Nevertheless, the bulls wouldn’t drop the ball, sending the price once more towards 1.7567.
But the bearish defense was just enough to repel the bulls. As a result, the price dropped all the way to the 1.6810 low, piercing all the intermediary levels, and halting above the significant 1.6724 support.
The bulls, noting that the 1.6810 low is a higher low concerning 1.6769, got absorbed and started a new rise, which — as of writing — rests just under the 1.7132 intermediary level.
Considering that 1.7132 was a resistance in the near past, the bears could rejoin the market in this area. So, if 1.7132 is validated as resistance, then 1.6988, followed by 1.6868, are bearish targets.
On the flip side, if the bulls manage to reconquer 1.7132, then they could challenge 1.7285 once more.
The fall from the 1.7554 high extended until the 1.6810 low. From there, s sharp appreciation commenced, bringing the price above the 1.6965 firm level.
Then, the rise continued, as of writing defining the 1.7139 high, just above the 1.7094 intermediary level.
If the bulls can validate 1.7094 as support, then 1.7244 could be their next target. However, if 1.7094 assumes the role of a resistance area, then the bears could send the price towards the 1.6965 support.
Levels to keep an eye on:
D1: 1.7132 1.6988 1.6868 1.7285
H4: 1.7094 1.7244 1.6965
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