The Great Britain pound versus the Canadian dollar currency pair seems to be having trouble climbing.
After the high of 1.7674 was proved to be part of a false piercing of the 1.7567 resistance area, the price fell until the 1.7285 level.
From there, the bulls attempted a comeback, but their efforts were confined to the 1.7567 level.
As a result, the price dropped abruptly, crafting the low of 1.6810. The low aided the bulls, as they were able to push the price until the 1.7294 high, just a little above the 1.7285 level.
But the bears came back, thus sending the price away from 1.7285 and to the low of 1.6906.
However, 1.6906, being a higher low, encouraged the bulls to draw another movement to the upside. This resulted in the formation of a new higher high, 1.7350.
Yet again 1.7285 proved to be a hard to win prize for the bulls, as the price dropped again, reaching the intermediary level of 1.6988.
Once more, the bulls projected the price towards the north, but the bears — again — narrowed their efforts. This is how the — technically — lower high of 1.73503 resulted (with respect to 1.73509). Even if the pipettes are ignored, the fact that the price halted around the previous higher high sends the message that the bearish pressure could be too strong for the bulls to be able to withstand.
So, if the bulls are not able to react and quickly send the price above 1.7285, then a new fall towards 1.7132 is possible, which could be followed by 1.6988.
However, if the bulls come to their senses and send the price above 1.7285, then they can eye 1.7445.
The low of 1.6906 is part of a false piercing that pertains to the lower boundary of a flat, a flat also limited by the 1.7337 resistance.
As long as 1.7337 plays the role of a resistance, the price could fall towards 1.7047 and even 1.6965. Still, if the 1.7244 level serves as support, then 1.7337 would be an intermediate target until the bulls reach the objective of 1.7487.
Levels to keep an eye on:
D1: 1.7285 1.7132 1.6988 1.7445
H4: 1.7337 1.7047 1.6965 1.7244 1.7337 1.7487
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