GBP/CAD Price Analysis: Rallies towards 1.7200 amid a falling channel breakout

  • GBP/CAD dived out of a falling channel on the hourly chart.
  • Hourly RSI probes the overbought territory.
  • The spot trades above all major HMAs.  

GBP/CAD broke the overnight consolidative mode to the upside in early Europe, diving out of the falling channel formation carved out on the hourly chart.

The bullish breakout appeared after the price closed the hour above the falling trendline support at 1.7099.

The golden cross, with the 50-hourly Simple Moving Average (HMA) having pierced the 21-HMA from below also adds credence to the move higher.

The bulls aim for the pattern target at 1.7226 before which the 1.7200 barrier will be tested. The hourly Relative Strength Index (RSI) teases the overbought conditions, suggesting that there is more room to the upside.

Any pullbacks will meet demand at the trendline resistance now support at 1.7099, below which the bullish 21-HMA at 1.7068 will likely challenge the bears’ commitment.

To conclude, the path of least resistance is to the upside, as the spot trades above all the major hourly averages.

GBP/CAD: Hourly chart




Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD edges above 1.18 amid mixed US data, slim stimulus hopes

EUR/USD is trading above 1.30 after US Durable Goods Orders beat expectations but Consumer Confidence missed estimates. Hopes for a US stimulus deal are slim with a week left until the elections.


GBP/USD stabilizes above 1.30 amid Brexit and covid uncertainty

GBP/USD is hovering above the round 1.30 levels as rising UK COVID-19 cases, uncertainty about Brexit, and PM Johnson's political problems weigh on sterling. US data has been mixed.


XAU/USD pares early gains, turns flat near $1,900

For the third straight trading day on Tuesday, the XAU/USD pair is moving sideways above $1,900 as participants wait for the next significant catalyst. After climbing to a daily high of $1,910 earlier in the day, the pair lost its traction and was last seen trading virtually unchanged on the day at $1,902.

Gold News

Bitcoin breaks new yearly highs; the road to $15,000 is clear

Bitcoin breaks new yearly highs and hits $13,464. The road to $15,000 is clear as there are no major resistance levels above the current price.

Read more

WTI trims losses and moves near $39.00/bbl ahead of API

Following two consecutive daily pullbacks, prices of the West Texas Intermediate regain some buying interest and reach the $39.00 mark per barrel on turnaround Tuesday.

Oil News