As a result of declines from the beginning of last year, pair GBPCAD reached vicinity of 1.6350, where at the beginning of the year there was a demand response. Although it was very dynamic, the later growth did not last long, because of a strong supply response in the vicinity of local resistance, which coincided with the 38.2% correction of Fibonacci. In June, was once again in area of 1.6350, where demand reactivated again. Can we expect new growth ?
Looking at daily chart, we can see that current increases are very dynamic, which could be attributed to the fact that this is a strong impulse and not just a slight, insignificant correction. So if this trend continues then we would expect to be able to test again level around 1.6950.
But for growth could continue, we would have first to overcome local resistance we are currently in. This is a level that was significant in the past and has been tested both as a support and after breaking as a resistance.
Even if supply occurs in the area of resistance currently being tested, given the dynamics of these increases, we would expect only a slight correction. At this point, the level of 1.6515 converging with the 38.2% of the Fibonacci correction from the whole, lasting for almost two weeks growth.
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