GBP/CAD Price Analysis: Bulls taking back control, significant correction on the cards

GBP/CAD is on the verge of a bullish correction.
Bulls can target at least a 38.2% Fibo or a 50% mean reversion higher up.

Ross J Burland FXStreet

As per the prior analysis, GBP/CAD Price Analysis: Bearish Head & Shoulders in the making, the cross melted to the downside and a correction could now be on the cards below the bearish structure.

Prior analysis

Daily chart

The Daily chart is in the process of making a topping pattern as a Head & Shoulders following a recent correction of the latest bearish impulse to the 61.8% Fibo.

A downside correction can therefore be expected.

Hourly chart

Live market, daily chart

Bulls can target a daily correction back to old support which has a confluence of the 50% mean reversion of the bearish impulse.

Hourly chart

The 8 open and 8 close moving averages are crossing in a bullish environment.

On a restest of resistance structure that would be expected to run support, the bulls can target the 61.8% Fibonacci confluence at structure ahead of the daily target.

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.

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