- GBP/CAD bulls looking for the right-hand shoulder to be completed.
- Prospects are only bullish once the newly formed resistance structure is broken.
GBP/CAD is on the verge of a bullish extension, but there is still some work to be done by the bulls as newly formed resistance structure puts a speed bump in the road.
However, the new downside structure formed in the last few trading sessions offer the bulls an opportunity should the over dead structure give way.
The following is an analysis of the weekly and daily chart accompanied by an illustration on a lower time frame to reveal where the next swing trading opportunity could emerge in a high probability setup.
Weekly chart
-637484245837802362.png)
As can be seen, the price is holding in a bullish territory with prospects of an extension into a deeper resistance with the supply zone.
Daily chart
-637484246865957841.png)
Meanwhile, the price has dropped to a familiar support that has a confluence of the weekly 50% mean reversion and daily 61.8% Fibonacci retracement level of the latest bullish impulse.
In more recent price action, the correction of the latest bullish impulse has met a 38.2% retracement where the price would be expected to stablise around.
In doing so, its worth noting that the price is also laying out the foundations for a bullish head and shoulders, so if it does indeed stabilise here, the right-hand shoulder would be a highly bullish conviction.
-637484251598634461.png)
4-hour chart
The last price action has carved out some downside structure to a 61.8% Fibo which is exactly what the bulls were waiting for in order to enable a long to be taken protected by bullish structure.
-637484253944354026.png)
However, in doing so, there is also a bearish structure that has been recently formed and bulls will want to see roof taken off before looking for an optimal entry point protected by a stop-loss below newly formed bullish structure.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.