This pound pair made a pretty strong bounce off a solid long-term support zone and could now be setting its sights on the next bullish targets.
Just how high can it go from here?
Check out these nearby inflection points!
GBP/CAD 4-hour Forex Chart by TradingView
Sterling didn’t exactly start this year off on the right foot, surging U.K. bond yields put the government’s spending plans in jeopardy, dragging GBP/CAD sharply towards the long-term floor at the 1.7500 handle.
Bulls were quick to defend this support zone, though, as falling crude oil prices eventually weighed on the correlated Loonie.
Can this pair hold on to its gains and go for more?
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!
Price is currently hitting a roadblock around the 100 SMA dynamic inflection point and R2 (1.7740) on its move up, possibly gearing up to retreat back to near-term support areas or the range bottom at S1 (1.7510).
Still, keep your eyes peeled for sustained bullish momentum or long green candlesticks closing above the latest highs, as this could pave the way for a rally to the area of interest at R3 (1.7850) or all the way up to the range resistance at R5 (1.8070).
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!
