• 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

Additional important levels

Overview
Today last price 1.6874
Today Daily Change 0.0008
Today Daily Change % 0.05%
Today daily open 1.6866
 
Trends
Daily SMA20 1.692
Daily SMA50 1.7116
Daily SMA100 1.7227
Daily SMA200 1.7261
 
Levels
Previous Daily High 1.6881
Previous Daily Low 1.6773
Previous Weekly High 1.6915
Previous Weekly Low 1.6722
Previous Monthly High 1.7196
Previous Monthly Low 1.6891
Daily Fibonacci 38.2% 1.684
Daily Fibonacci 61.8% 1.6814
Daily Pivot Point S1 1.6799
Daily Pivot Point S2 1.6732
Daily Pivot Point S3 1.6691
Daily Pivot Point R1 1.6907
Daily Pivot Point R2 1.6948
Daily Pivot Point R3 1.7015

 

 

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