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Bulls Aiming at 1.7705 on GBP/CAD?

February 11, 2021 at 5:42 by Dorin Rosu

The Great Britain pound versus the Canadian dollar currency pair seems to have managed to pass the 1.7567 wall. Will the bulls be able to maintain the gains?

Long-term perspective

From the 1.7674 high, after climbing from the 1.6978 low, the price fell under the 1.7567 resistance area it was just about to conquer.

Even if the bulls attempted to rotate the price from 1.7216 and have a second run for 1.7567, the bears were just too determined for the bulls to be able to make any significant change.

As a result, the decline prolonged until the 1.6810 low, from where the bulls set in motion a new movement toward the north, this time in the form of an ascending trend, for the rally seemed to be prone to exhaustion and, so, in the end, favor a bearish opportunity.

However, as the bulls were reaching the 1.7445 intermediary level, the bears kicked in and, yet again, caused a fall that did not stop until the 1.6768 low.

Showing a lot of perseverance, the bulls, anew, turned the price, sending it back to the 1.7445 resistance area, and started a consolidation phase supported by the 1.7285 level.

This aided a movement that printed a new high above the firm level of 1.7567. The bears attempted to defend the level, sending the price under it, but the bulls used the 1.7445 intermediary level as support to cause another rise.

One possibility is to see range trading between 1.7567 and 1.7445, respectively. This scenario may come true if the bulls fail to secure 1.7567 as support, which, if they do, opens the door to 1.7705.

Short-term perspective

From the 1.7199 low, the price accelerated until the 1.740 high, thus bouncing from the 1.7244 support to the 1.7626 resistance.

From the resistance area, the price fell under the first possible support level, 1.7487, and stopped a hair away from the 1.7337 level, at the 1.7349 low.

The bulls then sent the price above 1.7487 and attempted to stabilize it there. So, as far as 1.7487 remains support, 1.7626 is the first target, followed by 1.7701.

On the flip side, if 1.7487 cedes, 1.7337 is the first area to be visited by the bears.

Levels to keep an eye on:

D1: 1.7567 1.7445 1.7705
H4: 1.7487 1.7626 1.7701 1.7337

If you have any questions, comments, or opinions regarding the Technical Analysis, feel free to post them using the commentary form below.