Hello traders! There is an interesting price action going on with GBP/CAD. After the price has reached the 1.7800 high, it slowly but surely started to move lower. While going down, first it bounced off the 200 Exponential Moving Average, corrected up and rejected the 38.2% Fibonacci retracement level cleanly.
The price went down again and this time broke below the 200 EMA. On the correction up that has follows price reached the top of the descending channel and rejected it cleanly along with the resistance formed at 1.7470.
We can see that GBP/CAD started to print lower lows and lower highs while rejecting the resistance and the descending channel. This price action shows that bears are getting in control and as long as price remains below the 1.7470 level, further price decline should be expected.
The support is seen at 61.8% Fibs, which is one of the most common levels for the corrective move down from the major trend. Therefore, pair should be heading towards the 1.2723 level during this and next week.
Bias: Bearish while below 1.7470
Potential Resistance Zone: 1.7470 – 1.7500
Potential Targets: 1.7023
Have a profitable trading!