GBP/CAD Price Analysis: Bulls taking the reins and eye a daily extension
- GBP/CAD bulls are testing key resistance on the 4-hour time frame.
- The medium-term outlook is bullish according to a top-down technical analysis.
GBP/CAD is attempting to move higher in what would equate to a bullish extension on the weekly and daily time frames.
The following illustrates where the next bullish opportunity could be derived from a break of current resistance on the 4-hour time frame.
Monthly chart
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The price is trapped between monthly support and resistance, but a series of downside failures opens prospects of an attempt to the upside and break of resistance.
Weekly chart
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The weekly wick represents a correction on the daily time frame and thus would be expected to be filled on a daily bullish continuation to fresh highs.
Daily chart
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Bulls are holding above the 10-DMA at a confluence with a deep Fibonacci retracement area.
An upside extension can now be expected, entered and managed from a lower time frame, such as the 4-hour chart.
4-hour chart
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The price is attacking the 4-hour resistance structure.
On a bullish close through the area, bulls will anticipate a pullback to the pivot point for a discount in catching the ride towards a daily bullish extension.
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.
