GBPCAD opened today’s trading session at 1.7029 and is currently trading at approximately the same price after hitting the highs of 1.7036 during the early trading hours.
The rise in the value of the GBPCAD pair has been partly fueled by the weakening of the Canadian dollar against its counterparts, such as the British pound.
On the 1-hour GBPCAD chart, the pair has been trading within an ascending channel from January 21st, where it bounced the long-term support level at 1.6980. The prices tested the channel’s upper trendline on January 22nd before retracing back and have since traded within the channel.
Today, the GBPCAD bounced from the channel’s lower trendline and is expected to retest the recent short-term resistance level of 1.7079.
Based on the chart, the prices of GBPCAD will more than likely fail to break the resistance level of 1.7079, and if that happens, I expect the prices to retrace back and retest the 1.6980 support level.
However, there is also another possibility, where upon reaching the 1.7079 resistance levels, the prices will break out of the support and resistance channel and the ascending channel, which will confirm that the GBPCAD market has entered a bull market, and could reach 1.7160.
This post was last modified on Jan 25, 2022, 15:48 GMT 15:48