GBP/CAD Found Some Support

GBP/CAD has been moving to the downside for the past several weeks and for now the pair remains quite bearish, but it did find some support at 1.6790. It formed a pair of spinning top candlesticks on the four-hour time-frame and bounced off from it once. It is now testing it for a second time and if it breaks out below that level it will likely continue falling towards 1.6700. On the other hand, if the pair forms a double bottom at the aforementioned support level there could be a retracement towards the closest resistance – first towards 1.6920, then towards 1.6950. Obviously the trend is still bearish, and any retracement is only temporary.

GBP/CAD Is Bearish

For a little while it appeared that GBP/CAD may form a double bottom at the support at 1.7050 but the pair finally decisively broke out below that level and continued moving to the downside. Clearly, the bearish trend continues for now. Next target is likely the last low at 1.6760 and a breakout below that level could lead to a further move to the downside towards 1.6590. A long-term target remains the low at 1.57450, which the pair has tested several times for the past eighteen months. Whether or not it will be able to reach that level, let alone break out below it, remains to be seen, but it if it does, it may continue falling towards the support 1.4830.

GBP/CAD Is Bearish

GBP/CAD was forming a relatively wide sideways consolidating for about two weeks between the support at 1.7280 and the resistance at 1.7475 which coincides with the (MA)89 indicator on the daily time-frame. Finally the pair broke out below the aforementioned support at 1.7280 and continued moving to the downside. Currently the pair has broken out below the next support at 1.7240 and it will very likely reach 1.7200. A breakout below that level, in turn, could lead to a further move to the downside which Is at 1.7055, which is also the last low. A breakout below that level could be a signal for another drop towards the long-term target at 1.6750.