In the analysis two weeks ago, I wrote: “if the move up are not continued the supports for the bulls will be at the levels 2.0260 and 2.0030” and “too fast attempt to break through this resistance may end with deeper correction”. It happened, deeper correction become a reality. Since 23 September the weekly level of 2.0260 stopped the falls. Finally, last Wednesday that support was broken below. Last Friday break below was also the second indicated level on 2.0030.

GBP/CAD Daily
GBP/CAD Daily

If the demand side tries now to strike back and quickly back above the 2.0000, the next resistances will be found near: 2.0030, 2.0160, 2.0260, 2.0400 (marked on the chart for the interval H4). However more likely is the downward movement and test of the supports linked with the fibo level (marked on the chart for the interval D1): 1.9900, 1.9540, 1.9220. After rebound from one of these levels GBPCAD has a chance to return to the main trend which is uptrend.

GBP/CAD H4
GBP/CAD H4

TRY FX GROW. ECN & STP EXECUTION, FULL TRANSPARENCY.

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