Hello traders! GBP/CAD slowly but steadily is rising. It has been climbing up very slowly, although higher highs and higher lows are being produced. What does suggest that the price is getting more bullish, is the break above the downtrend trendline as well as the 50 and 200 Exponential Moving Average. Besides, back on October 1, the pair cleanly rejected the bottom of the ascending channel.
The most recent price action shows, that GBP/CAD rejected both Moving Averages and remains in the very strong demand zone. This is the previously formed resistance near 1.7140, which still is being respected. Therefore, buying pressure could be starting to increase as long as 4h closing prices remain above the recently established low at 1.7135.
Currently, GBP/CAD is rejecting the downtrend trendline which is acting as the support. This might attract buyers and result in the price increase from this point onwards. The key resistance is seen at 1.7424, which is confirmed by two Fibonacci retracement levels. Frist is the 38.2% Fibs applied to the previous corrective wave up and 161.8% Fibs applied to the current correction down.
Bias: Strongly bearish while below 1
Potential Support Zone: 1.7100 – 1.7140
Potential Targets: 1.7421
Have a profitable trading!