Trend: Bullish
Key support levels: 1.7046
Key resistance levels: 1.7340
Price Action: GBP/CAD bottomed out back on September 11th, when the price tested the 1.6809 low. Since then pair has been rising steadily and managed to reach 1.7292 high on September 30th. While the price has been climbing up, it broke above the 200 Exponential as well as Simple Moving average with confidence. This does imply a potential strength of the GBP/CAD in the long term perspective.
Currently, the price could be at the very bottom of the downside correction because it reached and rejected the previous level of resistance, which is now acting as the support. At the same time, the bottom of the ascending channel has been tested and rejected.
The current price area, near 1.7070 does seem to be very attractive for buyers, but only as long as daily closing prices remain above the 1.7046 support. If this will continue to be the case, GBP/CAD is expected to continue rising. It could move up as high as 1.7340 resistance area, which is confirmed by two Fibonacci retracement levels. One being the 61.8% Fibs applied to the overall downtrend and the second is the 127.2% Fibs applied to the current corrective move down.
All-in-all, the trend is bullish and at this point in time, the probability is highly in favor of the GBP/CAD growth, which should take place in the coming days. The upside move is approximately 250 pips, but we are yet to see if the support will continue to be respected.
Key support levels: 1.7046
Key resistance levels: 1.7340
Price Action: GBP/CAD bottomed out back on September 11th, when the price tested the 1.6809 low. Since then pair has been rising steadily and managed to reach 1.7292 high on September 30th. While the price has been climbing up, it broke above the 200 Exponential as well as Simple Moving average with confidence. This does imply a potential strength of the GBP/CAD in the long term perspective.
Currently, the price could be at the very bottom of the downside correction because it reached and rejected the previous level of resistance, which is now acting as the support. At the same time, the bottom of the ascending channel has been tested and rejected.
The current price area, near 1.7070 does seem to be very attractive for buyers, but only as long as daily closing prices remain above the 1.7046 support. If this will continue to be the case, GBP/CAD is expected to continue rising. It could move up as high as 1.7340 resistance area, which is confirmed by two Fibonacci retracement levels. One being the 61.8% Fibs applied to the overall downtrend and the second is the 127.2% Fibs applied to the current corrective move down.
All-in-all, the trend is bullish and at this point in time, the probability is highly in favor of the GBP/CAD growth, which should take place in the coming days. The upside move is approximately 250 pips, but we are yet to see if the support will continue to be respected.