GBP/CAD Price Analysis: Bulls stepping in at weekly demand zone
- GBP/CAD has met the weekly demand area and bulls are looking to engage.
- A daily 38.2% Fibonacci retracement is on the cards.
As per the prior analysis, GBP/CAD Price Analysis: Bears take back control and target weekly demand area, the price has indeed deteriorated deeper into weekly demand.
Prior analysis
Prior, 4-hour chart
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The price is now below the 21-SMA and Momentum is bearish also.
Bears will be looking for a correction of the spike lower for a discount in targetting a break of support structure on the next bearish impulse for a lower low.
This would be in a confluence of the longer-term chart's bearish market structure and broader bear trend.
Weekly bearish trend
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1-hour chart
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The price is retreating towards old support that would be expected to act as resistance.
There is also a confluence with a 50% mean reversion.
Live markets
Weekly chart
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As illustrated, the price has moved deeper into demand territory and was a set-up on the lower time frames.
4-hour chart
-637522271462958587.png)
Besides a manipulation to the upside, where anyway a well-placed stop loss above structure would have been in the clear, the price acted according to the prior analysis.
1-hour chart
-637522274893834157.png)
The manipulation is easier seen on the lower time frames, but stops higher up were above structure and protected.
The price has subsequently melted into the weekly demand zone.
What now?
The daily chart offers prospects of a significant 38.2% Fibonacci retracement to prior lows before the market can extend further to the downside.
Daily chart
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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.
