GBP/CAD Technical Analysis- Massive Selling Pressure vs Support Level
May 06, 2021|The Forex Secret –GBP/CAD is another volatile pair that is moving down with an impulsive bearish pressure. However, there is a recent bullish daily close that made the bearish pressure questionable.
Can GBP/CAD move lower? Let’s see the detailed price direction from The Forex Secret technical Analysis!
GBP/CAD - Selling Pressure is Strong at 1.7050
GBP/CAD selling pressure came from the massive economic growth in CANADA in terms of post-Covid recovery. Moreover, central banks are providing hawkish tones and remain optimistic about the Canadian economy.
On the other hand, the UK economy is also strong, which influences BoE and policymakers to provide a hawkish tone in today’s Interest rate decision.
In the above image, we can see the daily chart of GBP/CAD where the price started to move lower with a massive speed. However, the bearish pressure halted as soon as the price made a strong bullish daily close covering almost 80% of the previous days’ pressure.
On the other hand, the dynamic 20 EMA is above the price and the next support level is at 1.6840. In this situation, the price has a higher possibility to move down towards the support level. Conversely, a strong bullish daily close above the 0.7100 level may alter the current market structure.
Is GBP/CAD A Sell?
As of the above discussion, we can say that the GBP/CAD is sold based on intraday market behavior. However, investors should focus on what BoE says during the interest rate decision.
GBPCAD Selling Level: Intraday bearish target is 1.6980 and invalidation level 1.7100
GBPCAD Buying Level: Wait for D1 close above 1.7100 with the target of 0.7187