GBP/CAD Price Analysis: Falling wedge confirmation keeps buyers hopeful
- GBP/CAD extends previous day’s gains on confirming bullish chart pattern.
- Upbeat MACD signals direct short-term buyers to 21-day EMA.
- Bears have multiple barriers before retaking controls.
GBP/CAD stays firmer around 1.6875, keeping the previous day’s upside break of the key resistance ahead of Wednesday’s European session.
In doing so, the cross-currency pair confirms the bullish formation called falling wedge amid the bullish MACD signals before the release of the UK’s Consumer Price Index (CPI).
Read: When are the UK CPIs and how could they affect GBP/USD?
That said, the 21-day EMA level of 1.6910 guards the quote’s immediate upside ahead of the 1.7000 threshold and the late October’s peak surrounding 1.7090.
In a case where the UK inflation numbers propel the GBP/CAD prices beyond 1.7090, late August month’s low near 1.7275 and September’s peak close to 1.7445 will be in focus.
Alternatively, a pullback below the previous resistance line, around 1.6800, should challenge the monthly low of 1.6721.
However, any further downside will be challenged by the support line of the stated wedge formation, near 1.6690 at the latest.
GBP/CAD: Daily chart
Trend: Further upside expected
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
