The GBP/CAD has started to produce higher highs and higher lows suggesting the validity of an uptrend…
GBP/CAD symbol on the MT4 platform
Key support levels: 1.7162
Key resistance levels: 1.7246, 1.7277, 1.7424
On September 28th, the price broke above 200 Simple and Exponential Moving Average, showing strong bullish intentions by the pair. The corrective move down followed, with was stopped by a lower trendline of the ascending channel, which was rejected cleanly and the price went up once again.
Since September 2nd, the GBP/CAD has been attempting to break below 200 Simple and Exponential Moving Averages, although it failed to show a clear breakout. Spikes were produced below, but not definitive breakout followed. There were 2 attempted to break below the 1.7133 support level, confirmed by 38.2% Fibonacci. Both of them failed, showing how strongly it is being defended by buyers.
Therefore, as long as daily closing price stays above the recently produce low at 1.7133, GBP/CAD should be expected to continue trending up. The potential upside target and the key resistance is located at 1.7423, which is confirmed by two Fibonacci retracement levels.
These are 38.2% Fibs applied to the previous correction up occurred in August, and 261.8% Fibs apple to the current corrective wave down, where 1.7133 support has been rejected. This makes a potential upside move of 250-300 pips, which might be tested during this trading week.
Disclaimer: The analysis presented in this article is for educational purposes only and should not be considered as financial advice.
This analysis was done on MetaTrader 4.
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