GBP/CAD Price Analysis: Market structure opens potential for shorting

GBP/CAD has some room to run to the upside before meeting resistance.
Bears waiting to pounce on opportunities to familiar support.

Ross J Burland FXStreet

The price of GBP/CAD has been caught in a long term consolidation between support and resistance n the monthly charts for many months.

However, this still offers opportunity on the lower time frames and the current trajectory could be coming to an end soon.

Bulls are on the path towards a weekly resistance which could lead to near term shorting opportunities on the 4HR time frame.

The following is a top-down analysis of the pair that derives at the possibility of a swing trade to the downside.

Monthly chart

The monthly chart shows that the price has been well supported on the multiple tests.

However, the supply remains strong so there is still scope for further downside tests and the wick should be filled in on the latest weekly stick.

The weekly chart shows that there is an upside target to the prior support structure which is expected to turn to resistance.

Daily chart

From this point, there is still room to the upside from where we expect there to be a rejection and an opportunity to monitor for a downside trajectory for the 4HR time frame.

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.

EUR/USD flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.