The Great Britain pound versus the Canadian dollar currency pair looks like it is not able to stay above the 1.7499 level.
Long-term perspective
After confirming the major area of 1.6620, the price appreciated until the important resistance area of 1.7811. On its way, it validated the zone defined by the level of 1.7160, the descending trendline, and the ascending trendline, respectively, as a triple support. However, this was not enough for the buyers, which, after extending two thirds the way from 1.7499 to 1.7811, let the price close under 1.7499 on April 21.
One reason for such a development may very well be that on March 31, the bears heavily defended the long-time resistance area of 1.7811, thus sending a signal in the market that the profile is bearish. This could be the reason why the buyers could not steer the ship from 1.7499 when they were clearly in advantage.
Given these considerations, as long as the price sits below 1.7499, the aforementioned triple support is likely to be paid a visit, with the possibility of the decline extending until the support of 1.6986. Irrespective of which of the levels will serve as support, any surge would only represent a new opportunity for the bears, as only a clear win of 1.7499 could shift the situation in favor of the bulls, a situation in which 1.7811 becomes the main purpose.
Short-term perspective
The low of 1.7180 etched the start of an ascending trend that extended until the peak of 1.7683. As the price began a new advancement after the retracement that confirmed the double support made up by the lower line of the ascending channel and the level of 1.7481, the 1.7609 level opposed further progress towards the north. This caused the double support to be pierced, followed by the price falling until reaching the next support area, 1.7383, respectively.
As long as the price remains under 1.7481, the bears could try to push the price lower, with 1.7383 being the first target and 1.7288 the second.
But even if the bulls achieve in sending the price back above 1.7481, their efforts could be hampered by the double resistance formed by the lower line of the ascending channel and the level of 1.7609.
Levels to keep an eye on:
D1: 1.7499 1.7160 1.6986 1.7811
H4: 1.7481 1.7383 1.7288 1.7609
If you have any questions, comments, or opinions regarding the Technical Analysis, feel free to post them using the commentary form below.
