After breaking below a long-term floor, is GBP/CAD about to find resistance on a pullback?
Or will the pair find itself back inside the range again?
Better keep your eyes on these inflection points on the daily chart!
GBP/CAD Daily Forex – Chart Faster with TradingView
Surging crude oil prices have given the commodity-related Loonie enough energy to bust through its range support against the pound.
Meanwhile, less-hawkish BOE expectations and risk-off flows appear to have weighed on the British currency in the past weeks.
Are more GBP/CAD sellers ready to hop in soon?
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your homework on the British pound and the Canadian dollar, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
GBP/CAD is in correction mode as it hovers close to the 38.2% Fibonacci retracement level, which happens to line up with the broken long-term range bottom.
A larger pullback could still reach the 50% Fib near the 1.8400 major psychological resistance or the 61.8% level that coincides with the pivot point (1.8490), 1.8500 handle, and the dynamic resistance at the moving averages.
Note that the 100 SMA is crossing below the 200 SMA on the daily time frame to suggest that sellers are regaining the upper hand. Should any of the resistance levels hold, look out for a continuation of the slide to the swing low near S2 (1.8080) or to fresh lows at S3 (1.7830).
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment.
Promoted: The Analysis & Strategy are only half the Battle; Your Mindset is the Rest.
Today’s chart art focuses in on a potential GBP/CAD selloff. But as any pro will tell you, even the cleanest trend-following setup can fall apart if the trader doesn’t stay disciplined when price starts testing the level.
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Please be aware that the technical analysis content provided herein is for informational and educational purposes only. It should not be construed as trading advice or a suggestion of any specific directional bias. Technical analysis is just one aspect of a comprehensive trading strategy. The technical setups discussed are intended to highlight potential areas of interest that other traders may be observing. Ultimately, all trading decisions, risk management strategies, and their resulting outcomes are the sole responsibility of each individual trader. Please trade responsibly.
