The Great Britain pound versus the Canadian dollar currency pair seems to be determined to reach 1.7445. Can the bears change this course?
Following the fall from the 1.7674 high to the 1.7216 low, the price validated 1.7567 as resistance. This triggered a sharp decline, one that reached the 1.6810 low.
However, from 1.6810, the bulls began a slow but steady recovery, reconquering each level along their way. This is how a series of higher lows and highs were printed, 1.6973 and 1.7413, respectively, being the latest.
The high of 1.7413 stopped before reaching the next resistance area, represented by the 1.7445 intermediary level. Nevertheless, this was not seen by the market participants as a bullish failure — which would have made the price ebb.
This translates into the market participants waiting for a support to be validated so that the appreciation would have an area to continue from. The role could be offered to the 1.7285 intermediary level. So, if the price makes a throwback to it, then the bulls could recharge and then head for 1.7445.
Of course, a short-lived consolidation phase — such as a pennant or flag — can also take place.
On the other hand, if the price slips under 1.7285, then 1.7132 could be the next bearish target.
After validating the firm support level of 1.6965, the price started to rise, piercing the next solid resistance area, 1.7244.
For a short while, the intermediary level of 1.7337 limited the bullish advancement. However, it was also pierced.
So, if the bulls succeed in validating 1.7337 as support, then they can eye the next target, 1.7487.
On the flip side, if the price falls beneath the 1.7337 area and does not recover quickly, then 1.7244 would be the next bearish objective.
Levels to keep an eye on:
D1: 1.7285 1.7445 1.7132
H4: 1.7337 1.7487 1.7244
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