The Great Britain pound versus the Canadian dollar currency pair succeeded in recovering after the price went beneath 1.7216. But is this a sustainable rise?
Long-term perspective
The rally from the 1.6542 low, limited by the 1.7567 resistance level, allowed a fall to take place, one that almost touched the 1.6724 area, but stopped after printing the 1.6750 and 1.6769 lows.
From the lows, the bulls attempted another push against the firm 1.7567 resistance, but their efforts only crafted the 1.7674 high, after which the price depreciated.
The depreciation pierced two intermediary levels, 1.7445 and 1.7285, respectively, printing the 1.7216 low in the process. As the low was beneath a double support area, noted by the 1.7285 intermediary level and the ascending trendline that starts from 1.6769, the expectations for the bears were that they would be able to seize the moment and drive the price further towards the south.
However, the bulls seem to be very determined in their mission to conquer the 1.7567 resistance. As that implies sending the price around that level, the bulls must — of course — do what they know best. And so they did, as from the 1.7216 low, they managed to print an upwards leg which set the price above the 1.7285 level and almost back into the ascending trend.
So, as long as the price oscillates above 1.7285, the bulls have their next target, 1.7445, in reach. Of course, once the latter is validated as support, they have another chance to conquer 1.7567.
On the other hand, if the price slips again under 1.7285, then the bears could push it towards 1.7132.
Short-term perspective
The appreciation that started from 1.6978 extended all the way to the 1.7674 high. From there, a downwards movement began, noting the 1.7216 low.
Noteworthy is that the appreciation extended until a firm level, 1.7626, and fell until its homolog, at 1.7244. Even more, the retracement from the 1.7216 low recuperated a relevant part of the slide from 1.7448 and consolidated above the intermediary level of 1.7337, searching to confirm it as support.
So, if the bulls do manage to print another leg towards the upside, then they could reach 1.7487, and from there head on for 1.7626. If the price falls under 1.7335, then the 1.7244 level might be under bearish pressure, which can lead to a dip until 1.7094.
Levels to keep an eye on:
D1: 1.7285 1.7445 1.7567 1.7132
H4: 1.7337 1.7487 1.7626 1.7244 1.7094
If you have any questions, comments, or opinions regarding the Technical Analysis, feel free to post them using the commentary form below.
