GBP/CAD Rallies Above 1.7665

edged north on Thursday, breaking above the 1.7665 barrier, marked by Tuesday’s high, thereby confirming a forthcoming higher high on both the 4-hour and daily charts. This, combined with the fact that the rate is trading above the upside support line drawn from the low of Dec. 11, paints a positive near-term picture in our view.

We believe that the break above 1.7665 may have opened the path towards the 1.7795 hurdle, which is marked as a resistance by the high of Mar. 31, 2020. If the bulls are strong enough to overcome that obstacle as well, then we may see them putting the 1.7923 territory on their radars. That territory provided strong resistance on Mar. 10.

Shifting attention to our short-term oscillators, we see that the RSI rebounded from near its 50 line and is now heading towards 70, while the MACD lies within its positive territory and appears ready to move back above its trigger line. Both indicators suggest that the rate has started regaining upside speed, which supports the notion for further advances.

In order to abandon the bullish case and start examining a bearish reversal, we would like to see a decisive dip below 1.7477, a support marked by the low of Feb. 8. The rate would already be below the aforementioned upside line and may initially slide towards the low of Feb. 4, at 1.7350. Another break, below 1.7350, could extend the fall towards the 1.7200 zone, defined as a support by the low of Jan. 20.

GBP/CAD 4-hour chart technical analysis

GBP/CAD 4-hour chart technical analysis

Disclaimer: The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. The Group of Companies of JFD, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyses and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyses and must therefore be viewed by the reader as marketing information. JFD prohibits the duplication or publication without explicit approval. 79.07% of the retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Please read the full Risk Disclosure – .

This site uses cookies to offer you a better browsing experience. By browsing this website, you agree to our use of cookies.