Technical Analysis – GBPCAD bulls catch their breath after strong rally
Should the bulls stage another rally and clear the 1.6862 level, they would attempt a retest of the 1.7080 level defined by the October-November 2021 highs. They would then set their eyes higher and more specifically at the February 21, 2022 and August 20, 2021 highs at 1.7385 and 1.7624 respectively.
GBPCAD bears are trying to find an opening and finally record a pullback. However, the momentum indicators are portraying a delicate balance. The Average Directional Movement Index (ADX) points to a trendless market and the RSI is just above its 50-midpoint. The stochastic oscillator made a break lower, but it now seems to be trading sideways.
If the bears manage to take over the reins and break the November 4, 2022 upwards sloping trendline and the 50-day simple moving average (SMA), they would come up against the busy 1.6552-1.6767 area. This is defined by multiple GBPCAD lows and the 100-day simple moving average (SMA). The path then appears to be clear until the 1.61 area.
To sum up, the bulls are taking a breather and prepping for the next upleg as the bears seem to find it hard to stage a decent pullback.Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
