Hello traders! Across the board, it seems like GBP will start loosing its’ value to other major currency pairs. In this analysis, we will look at the GBP/CAD currency pair and its’ potential in the coming weeks.
Starting with a weekly chart, we can see that there is massive resistance formed at 1.7736 area, which is 38.2% Fibonacci retracement level. Pair has rejected this level 4 consecutive times, with the recent one occurred on March 09. After that price broke below the 200 Exponential Moving Average, where today it found the area of resistance.
On the daily chart, Fibonacci applied to the corrective wave up after the breakout of the uptrend trendline and well as 200 EMA shows the potential downside target. It could be the level of 361.8% Fibs which is near 1.6000 psychological support.
The 1.6000 support is also confirmed by 227.2% Fibonacci retracement level on the 4-hour chart. Currently, price is the top of the descending channel and 38.2% Fibonacci resistance. It will be important to see today close because it will be close to the weekly candle. If it manages to stay below 1.7170, the downtrend will most likely become the reality.
Bias: Bearish if weekly close will be below 1.7100
Potential Resistance Zone: 1.7100 – 1.7200
Potential Targets: 1.6020 – 1.6000
Have a profitable trading!