GBP/CAD Price Analysis: Bears eye a downside extension
- GBP/CAD bulls remain in control while above 4-hour support.
- Bears have marked the upside structure to re-engage.
GBP/CAD's market structure is longer-term bearish but shorter-term bullishly corrective.
The following is a top-down analysis that illustrates where the price is currently heading on a short term basis in comparison to the longer-term outlook.
Weekly chart
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There are prospects of a 50% mean reversion on the longer-term charts prior to a downside extension.
Daily chart
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On the other hand, the price has already corrected a 50% mean reversion on the daily chart, although there has been a secondary correction that argues for a deeper retracement.
4-hour chart
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From the 4-hour chart perspective, however, the bulls are in control until a break of the current support structure.
A final break of this, then the downside will be in play.
Author
Ross J Burland
FXStreet
Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.
