Bulls to Fight for 1.7567 on GBP/CAD?

The Great Britain pound versus the Canadian dollar currency pair seems to be under bearish pressure. Still, the bulls are not yet ready to let go.

Long-term perspective
The bullish movement that started from the 1.6810 low dropped after writing the 1.7496 high. The drop extended to as low as 1.6768, a lower low with respect to 1.6810.
Nevertheless, the bulls made a new attempt, succeeding in almost touching the previous high, for they printed the 1.7483 lower high. However, on this occasion, they formed a consolidation.
The consolidation phase allowed for the continuation of the rise, with the price etching the 1.7640 high, above the firm level of 1.7567. As the bears were not ready to cede the level without a fight, the 1.7349 low was established.
The 1.7349 low also acts as part of the false piercing of the 1.7445 intermediary level. As a result, the bulls thrust and pierced the area of 1.7567. This allowed for a surge that lasted until 1.7884.
The downturn that followed went under the area that had just been conquered, but stopped a little before the intermediary level of 1.7445. To the liking of the bulls, this allowed the price to go back to the major 1.7567 level.
If the bulls accomplish to validate 1.7567 as support, then they could aim for 1.7705. On the other hand, if 1.7567 remains resistance, or if it is falsely pierced, then the high of the piercing movement — alongside the 1.7640 high — (or the validation of 1.7567 as a ceiling) may picture a head and shoulders chart pattern, with the head marked by 1.7884 and the neck-line defined by 1.7445.
So, if the chart pattern does take shape and is validated, then 1.7285 could very well be the first profit booking area for the bears.

Short-term perspective
From the 1.7349 low, the price climbed until the 1.7887 level. From there, a descending trend started, one that — as of writing — noted 1.7454 — a lower low — as its lowest point.
So, if the trend continues, which translates into 1.7625 being validated as resistance, then 1.7487 may be a partial profit booking area for the bears in their way to the main target of 1.7335.
On the other hand, if 1.7625 becomes support, then 1.7701, followed by 1.7791, is the next bullish objective.

Levels to keep an eye on:

D1: 1.7567 1.7705 1.7445 1.7285
H4: 1.7625 1.7487 1.7335 1.7701 1.7791

If you have any questions, comments, or opinions regarding the Technical Analysis, feel free to post them using the commentary form below.

Original from: www.earnforex.com