Hello traders! Back in July, GBP/CAD broke above the long term downtrend trendline and tested the resistance area near 1.7651. The correction down followed where pair r3ejected the 50 Exponential Moving Average while producing a double top.
The next move was once again to the upside and the key resistance at 1.7456 was broken, with the daily break and close above. This suggests that bulls are still in control and the uptrend is likely to continue. Considering that the current price is finding support at the downtrend trendline, it might provide more buying pressure to the GBP/CAD.
As long as daily close remains above the 50 EMA, uptrend or at least one more wave to the upside can be expected. GBP/CAD could be aiming towards already formed key resistance area near 1.5650, which is also confirmed by 227.2% Fibs applied to the current correction down. But for this scenario, today’s closing price must be watched closely, as it must remain above 1.7354.
Bias: Bullish as long as price remains above 50 EMA on the daily timeframe and daily closing prices remain above 1.7354
Potential Support Zone: 1.7340 – 1.7360
Potential Targets: 1.7650
Have a profitable trading!