GBP/CAD Price Analysis: Choppy consolidation with bullish bias

GBP/CAD bulls remain in the game to target the 1.7470s.

MACD holds above zero and the 20-EMA supports. 

Further to the prior session's analysis, GBP/CAD Price Analysis: Bulls taking the reins and eye a daily extension, the price, as expected moved, triggered a long setup.

The following is an illustration of the current state of play and offers a second opportunity to take part in what has a high probability of resulting in a 1:3 risk to reward trade. 

For a recap, the thesis of the setup was derived from a top-down analysis and bullish bias on the longer-term time frames:

Weekly chart

The weekly chart shows that the price has corrected the bullish impulse.

A bullish continuation would be expected at this juncture, especially given the long wick on the prior week's candle, 

This merely represents the price flow on the lower time frames.

Daily chart

As the eclipse illustrates, the weekly wick is the make-up of the daily impulse and correction. 

Therefore, the next weekly stick would be expected to fill in the space of the prior week's wick as the price extends higher following the daily correction. 

4-hour chart

Prior analysis:

The price was predicted to break higher and then pull back to test the old resistance turned support.

Live market:

The price rose through resistance but the structure failed to hold on a restest. 

Nevertheless, the technical environment remains bullish. MACD is above zero and the price is above the 20-EMA.

Bulls can take advantage of the live market with a set up that offers a 1:3 risk to reward, with a stop loss below the structure:

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Take advantage of market volatility with our daily Forex, Crypto and Indices Trade Ideas!

Become Premium!    

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD pierces 1.20 after the ECB, as market's mood turns sour

EUR/USD is trading  sub-1.2000 but near the figure, in a mixture of upbeat US employment data and plummeting Wall Street. US equities sunk following reports of US President JOE Biden's plan to hike capital gains tax.  


GBP/USD tumbles to 1.3820 on dollar strength

GBP/USD has tumbled toward 1.3820 as the dollar gains ground across the board. US jobless claims beat estimates, while concerns mount about US tax hikes. 


XAU/USD slides to fresh session lows, closer to $1,780 level

Gold extended its steady intraday descent and dropped to fresh daily lows, around the $1,782 region during the mid-European session. The precious metal witnessed a modest pullback from the vicinity of the $1,800 mark.

Gold News

Ethereum price hits new all-time high above $2,550

Ethereum price just had a breakout above the previous all-time high at $2,548 and faces no resistance ahead. The digital asset has been outperforming the market for the past two days and it's leading the other coins. The next most significant price target for ETH will be $3,000. 

Read more

S&P 500 (SPX) Nasdaq (QQQ) Day Ahead: Earnings continue to underpin equities

The equity market continues to remain robust despite the Netflix nightmare. Equities racked up further gains on Wednesday with all major indices closing in the green.

Read more