GBP/CAD at the 1.6413 Sweet Spot

The Great Britain pound versus the Canadian dollar currency pair seems to have confirmed some relevant areas and as a consequence is about to begin a convinced movement.

Long-term perspective
After the last bullish attempt around the long-time resistance area, the price topped at 1.7728 and confirmed 1.7811 as resistance, unleashing a bearish movement that brought the price at the 1.5936 support area.
Along the path, some interesting occurrences took place. The first one is that the price managed to pierce an important support area, 1.6620 respectively, and confirm it later on as resistance via the candle o September 20 that topped at 1.6691. This confirmation caused the price to go once more beneath the strict resistance area of 1.6413, a level that — after it has been confirmed as resistance towards the end of August 2019 — fueled the decline that touched 1.5936. On the other hand, 1.5936 was an area that rejected the price quite sharply in most of the times when it was about to be pierced, but now the rejection does not seem to be propelled with that much energy away from the level anymore.
So, besides the confirmation of 1.6620 as resistance, the fact that the price respects the strict resistance area and that the 1.5936 support level gets weaker — fewer buyers, thus less energy to drive the price upwards — conclude to that the ingredients for a nosedive are set into place.
So, if 1.6413 gets confirmed as resistance, then 1.5936 — at least — is in the cards. Only the confirmation of 1.6620 as support will open the door to 1.6986 once more.

Short-term perspective
The price is in an ascending channel and in a consolidative phase. As long as the double support etched by the lower line of the channel and the 1.6188 level is not taken out, the price is expected to continue its movement to the north. However, if the price — while being under 1.6328 — does not manage to pierce it, then the aforementioned double support is at risk.
If the price breaks the double support, then the targets are 1.5946, followed by the psychological 1.5900.

Levels to keep an eye on:

D1: 1.6413 1.5936 1.6620 1.6986
H4: 1.6328 1.6185 1.5964 1.6684


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