Bears Took Over GBP/CAD from 1.7285

The Great Britain pound versus the Canadian dollar currency pair seems to be under bearish pressure. Can the bulls do something for a change?

Long-term perspective
The rally that started from the 1.6768 low consolidated under the 1.7445 intermediary level. Following was another leg up, one that managed to get above the firm area of 1.7567 but ended up as a false piercing, for the bears pushed the price under the level until the 1.7349 low.
However, given the fact that the bulls already had a victory, thus the upward momentum was at its might, they ironed out the bearish attempt, leaving behind the false piercing of the 1.7445 intermediary level.
As they were riding the momentum, the bulls put the price above and departed from the 1.7567 area. The momentum faded away around the 1.7792 level. This resulted in the formation of the 1.7884 high, from where the bears commenced a sustained decline.
This is how the sellers set the price back under 1.7567, validated it as resistance, and set for a journey toward the south.
As the previous low of 1.7235 was taken out, one plausible scenario is for the fall to continue, targeting 1.7132. Still, if the bulls manage to rotate the price and win back 1.7285, they could hope for another visit to 1.7445.

Short-term perspective
After validating the intermediary level of 1.7887 as resistance, a sustained downward movement came into being.
Upon reaching the firm zone of 1.7244, the price bounced as the bulls attempted to shift direction.
Nevertheless, they only yield a correction within the descending trend — as the 1.7435 high suggests.
As a result, the bears sent the price beneath 1.7244. If the bears maintain the current enthusiasm, 1.7094 is just a matter of time. On the flip side, if the bulls establish the price above 1.7244, they could extend until 1.7487.

Levels to keep an eye on:

D1: 1.7132 1.7285 1.7445
H4: 1.7244 1.7094 1.7337 1.7487

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Original from: www.earnforex.com