GBP/CAD could see further gains above the short-term SMAs.
GBP/CAD is rising after it found strong support at the 38.2% Fibonacci retracement level of the upward movement from 1.6590 to 1.7795, around 1.7335. The technical indicators are trying to strengthen their momentum, mirroring the market’s behavior over the last days as the RSI is approaching the 50
Additional increases may drive the price towards the 20- and 40-day simple moving averages (SMA) currently around the 23.6% Fibonacci of 1.7510, and then the price could challenge the nine-month high of 1.7615. Above the latter, the nine-month peak of 1.7795, registered on March 12 comes into view.
In case the pair changes its short-term direction to the downside, the bears would probably challenge the 1.7350 support and the 38.2% Fibonacci of 1.7335, which has been a congested area over the last month. A break lower could last until the 1.7270 level.
In the more medium-term picture, the slightly bullish correction shifted to a stronger positive tendency, however, it failed several times over the last sessions to post a higher high.
All trading involves risk. It is possible to lose all your capital.
This information is not considered as investment advice or investment recommendation but instead a marketing communication. This material has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.