GBP/CAD Price Analysis: Choppy consolidation with bullish bias

Ross J Burland FXStreet

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:

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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