Hello traders! GBP/CAD trend still remains bullish as the price continues to print lower lows and lower highs. Back on September 24 pair has rejected the 50 Exponential Moving Average, providing an important support area established at 1.7054. On October 9 GBP/CAD has reached and rejected this support along with the uptrend trendline and the support downtrend trendline.
This emphasizes the importance of the 1.7054 support which actually was rejected today as well. As long as the daily closing price will stay above this support, GBP/CAD will most definitely continue to trend up. The current price could be very attractive for buyers as it provides a good risk/reward ratio.
The pair could be heading up, to test 1.7370 which is confirmed by the 127.2% Fibonacci retracement level as well as the downtrend trendline. At the same time, it can be seen that recently 50 EMA was rejected which might provide some selling pressure during this week. Although break above the EMA could be a strong bullish confirmation for the short to medium and maybe even long term.
Bias: Strongly bullish while above 1.7054
Potential Support Zone: 1.7055 – 1.7075
Potential Targets: 1.7370
Have a profitable trading!