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 tests nine-day EMA support near 1.1850

EUR/USD inches lower during the Asian hours on Monday, trading around 1.1870 at the time of writing. The 14-day Relative Strength Index momentum indicator at 56 stays above the midline, confirming improving momentum. RSI has cooled from prior overbought readings but stabilizes above 50, suggesting dips could stay limited before buyers reassert control.

GBP/USD flat lines as traders await key UK macro data and FOMC minutes

The GBP/USD pair kicks off a new week on a subdued note and oscillates in a narrow range, just below mid-1.3600s, during the Asian session. Moreover, the mixed fundamental backdrop warrants some caution for aggressive traders as the market focus now shifts to this week's important releases from the UK and the US.

Gold slides below $5,000 amid USD uptick and positive risk tone; downside seems limited

Gold attracts fresh sellers at the start of a new week and reverses a part of Friday's strong move up of over $150 from sub-$4,900 levels. The commodity slides back below the $5,000 psychological mark during the Asian session, though the downside potential seems limited amid a combination of supporting factors.

Bitcoin, Ethereum and Ripple consolidate within key ranges as selling pressure eases

Bitcoin and Ethereum prices have been trading sideways within key ranges following the massive correction. Meanwhile, XRP recovers slightly, breaking above the key resistance zone. The top three cryptocurrencies hint at a potential short-term recovery, with momentum indicators showing fading bearish signs.

Global inflation watch: Signs of cooling services inflation

Realized inflation landed close to expectations in January, as negative base effects weighed on the annual rates. Remaining sticky inflation is largely explained by services, while tariff-driven goods inflation remains limited even in the US.

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.