GBPCAD Well-Placed to Reverse Higher
GBPCAD talking points:
- GBPCAD has fallen steeply since it hit a high of 1.8382 on March 26.
- However, after touching a 1.7964 low on April 3, it is well placed to rally further.
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GBPCAD gains on the cards
GBPCAD has dropped sharply since it hit 1.8382 nine days ago, falling to a low of 1.7964 yesterday. However, it has recovered by almost a cent since then and is now in a good position to rally further.
As the hourly chart below shows, it has already broken above the 20-hour moving average and is currently challenging the 50-hour moving average. If, as seems likely, both that and the 100-hour moving average just above it are overcome, the next target would be the trendline joining the March 26 and April 2 highs.
GBPCAD Price Chart, Hourly Timeframe (March 25 – April 4, 2018)
That comes in currently at 1.8110 and could provide stiffer resistance. However, if it can be broken, there is little to stop it rallying back to Monday’s 1.8180 high and potentially gain more ground from there.
Meanwhile, to the downside, trendline support at 1.7980 should limit potential losses, at least for a while.
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--- Written by Martin Essex, Analyst and Editor
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.