Chart Of The Day: GBPCAD Indicates Pullback As Medium-Term Resistance Remains Intact

Thu, 20 Apr 2017 08:06

Even as Tuesday's wild-moves of the GBP propelled GBPCAD towards seven-month high, the pair failed to surpass a medium-term descending trend-line, around 1.7290 – 1.7300, and has been struggling near the same since then. Considering the quote's repeated defeat from the mentioned TL, coupled with overbought RSI, chances of witnessing a fresh pullback in direction to 1.7190 & 1.7160 immediate supports becomes brighter. Given the prices extend profit-booking below 1.7160, the 1.7100 round-figure and the 1.7000 psychological magnet become crucial for traders to watch, clearing which 1.6975 and 1.6880 may come-back on the chart.

Alternatively, pair's daily closing above 1.7300 could further strengthen Bulls in demanding 1.7390 and the 1.7480 resistances. Incase if upside momentum remains present after clearing 1.7480, buyers can aim for 1.7530, 1.7570 and the 1.7600 numbers to north.

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