Will 1.7285 on GBP/CAD Offer Support?

The Great Britain pound versus the Canadian dollar currency pair seems to be in a bit of a struggle, with both bulls and bears striving to gain traction.

Long-term perspective
The appreciation from the 1.6769 low climbed until the 1.7474 high, coming very close to the 1.7705 intermediary level and clearly above the firm resistance area of 1.7567.
However, the bears reclaimed their ground, swiftly sending the price back beneath 1.7567, to the 1.7216 low in a first instance, and then to 1.6810.
Still, the bulls did not allow the bears to inflict further depreciation, for they started an ascending trend that lasted until the 1.7496 high.
But just as the previous high, 1.7496 ended up being a false piercing of a resistance zone, a course of events that unfolded yet another fall, which came to be the lowest of the previous two, at 1.6768.
Nevertheless, the bulls once more sent the price to higher values, putting it back above the 1.7445 intermediary level. But the bears, anew, rendered the new lower high of 1.7483 as a false piercing of a ceiling.
Yet, the difference is that this time the fall was limited. So, from here, two scenarios are plausible. The first one is a reenactment of the events that occurred after the 1.7216 low. If this is to be the case, then the price may validate 1.7285 as resistance or simply trade under the low of the candle corresponding to January the 20th, targeting 1.7132.
On the flip side, 1.7285 becoming support opens the door to a new chance for the bulls to conquer 1.7445.

Short-term perspective
From the 1.6946 low, after validating 1.6965 as support, the price rose above the 1.7244, which became support.
Even if the intermediary level of 1.7487, and the three highlighted peaks, speak that the market is in a consolidation phase, 1.7244 did a pretty good job at making sure it stays that way, keeping the bears in check.
So, as long as 1.7244 remains support, 1.7487 is the next area of interest, with 1.7626 being the main objective.
Only if 1.7244 cedes, then the fall may extend to 1.7094.

Levels to keep an eye on:

D1: 1.7285 1.7132 1.7445
H4: 1.7244 1.7487 1.7628 1.7094

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